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Vancouver city council has approved a 25 per cent increase to its empty homes tax.

The vacancy tax, which was set at one per cent when approved in 2016, was brought in as a measure to return empty or underused properties to boost the city’s rental housing stock.

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During his 2018 election campaign, Mayor Kennedy Stewart supported tripling the tax rate to three per cent, arguing the city needed to take tough measures to fight speculation and protect the Vancouver housing market from global financial forces and speculators.

On Wednesday, however, the mayor and council approved a more modest increase, boosting the tax rate to 1.25 per cent in 2020.

In a report to council, city staff advised against a big tax hike.

“Experts also strongly cautioned that an increase in EHT rate at this stage would likely increase the potential for noncompliance and evasion, particularly for properties that are also paying the new provincial speculation tax,” the report said.