The Carney government’s new plan to expand GST rebates on new home purchases in Ontario — but not elsewhere in Canada — is bad policy and may further inflame concerns about whether Ottawa treats all provinces fairly.

As part of a deal with the Ontario government, the federal government will spend $875 million so all qualifying buyers receive a full rebate on the 5% goods and services tax (GST) they pay on newly-built home purchases under $1 million (with partial rebates available on homes up to $1.5 million) in the province. Meanwhile, comparable federal GST rebates in the rest of Canada are limited to first-time homebuyers. And for non-first-time homebuyers outside Ontario, the only available federal GST rebate program is much less generous — it refunds 36% of GST charged on new home purchases under $350,000 (with reduced rebates available for homes up to $450,000). In practice, that means non-first-time homebuyers are........

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