I'd say both, and it is failing at both counts :). The federal government is actually thinking of imposing it across Canada, even though most other places other than Vancouver and Toronto could actually use some foreign investment.
Pigovian taxes are good economics but dubious politics for this exact reason. If you rely on them for revenue, you don’t want to actually disincentivize the behavior they’re intended to disincentivize so you keep the tax artificially low.