I have read some news with regard to this issue. First, Mayor Ford wants to slash it by 10% of the total land transfer tax revenue and this will be an interesting topic in July as this issue will be open for debate. The mayor by the way promised to scrap this in his election campaign promise . The land transfer tax was implemented in the time of the previous Toronto mayor, David Miller. However, some councillors are concerned with the loss revenue and the consequence might be to hike the property tax.
But in my opinion, activity in real estate in Toronto will flourish more if the land transfer tax is abolished. People who are buying and selling may stay in Toronto area as it may become more competitive. The advantage of Toronto is its low property tax and the availability of immediate and working transit.