A Luxury Tax in Canada?

Author:
Publish date:
1_Canada_Montreal

Canadian news outlets are reporting that a proposed federal budget set to go into effect Jan. 1, 2022, includes a tax on luxury items, such as boats that retail for more than CAD250,000 ($200,000).

If approved, the budget document cited by CTV News projects a CAD604 million ($482 million) increase in federal revenues during a five-year period.

The tax, which also applies to automobiles and aircraft, is calculated as the lesser of:

• 20 percent of retail above the threshold ($100,000 for cars and personal aircraft, $250,000 for boats)

• 10 percent of the full value of the car, boat or personal aircraft

“Even as Canadians have sacrificed to keep our economy going through the pandemic, some of the wealthiest have done well,” the budget document stated. “Those who can afford to buy luxury goods can afford to pay a bit more. To that end, the government is following through on its commitment to introduce a tax on select luxury goods.”

Last year, NMMA Canada addressed a 10 percent proposed luxury tax as a significant detriment to the industry.

“We are ready to work with the government to find new ways to generate revenue,” said NMMA Canada president Sara Anghel at the time. “But we simply can’t support a new tax that would severely damage the boating industry, put thousands of good jobs at risk, and potentially put government finances further into the red.”

Related

Everglades Expands Executive Team

The Edgewater, Fla.-based manufacturer adds positions in finance, sales and marketing and operations.

Heed Caution While Refueling

Ethanol can be back in a big way, and insufficent labeling at the pumps could lead to problems for your marine powerplant. And the MRAA’s voices support for the 30 by 30 initaitive.

Training the Next Generation

Crest Pontoons will donate a complete boat and trailer to a local high school’s raffle to raise money for its vocational programs.

An “Above Average” Hurricane Season

BoatUS wants to help boaters get ready for the 2021 Atlantic hurricane season, which begins June 1.

Webasto Produces 8,000th Marine Roof

The German company designs and builds a number of glass roof solutions for boats.

A Strong Q2 for Johnson Outdoors

With jumps in nearly all its business segments, the recreation manufacturer saw net sales increase by 26 percent.

Thrust Issues

Is it time for the industry to standardize trolling motor ratings?