In its spring budget, the NDP government forecast a 2.6 per cent revenue increase to almost $2.4 billion from the property purchase tax.
On the other hand, the provincial government is working very hard to slow down the number of real estate purchases that generate that revenue. The NDP will penalize foreign buyers and a proposed speculation tax will further penalize economic investment in the province.
They have succeeded admirably in the first four months of 2018 in dampening the number of sales. From BCREA, which publishes provincial real estate numbers, we learn that the number of sales was down 11.6 per cent at the end of April, confirming projections of the previous government.
I am neither an economist nor an accountant, but the numbers don`t add up.
How can you get more revenue when you are working hard to limit the revenue generator? What will the story be to the public when revenue reality doesn't meet budget projections? Not their fault?
Real estate is one part of the engine that drives the B.C. economy, and the NDP's misguided policies are limiting its fuel.
Elden Ulrich