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NMMA Canada Fights Luxury Tax

1_NMMALUXURYTAX

The National Marine Manufacturers Association this morning reported that the Senate of Canada last week met to consider modifications to Bill C-19, which includes a luxury tax on new boats valued at Canadian $250,000 or more. The law is scheduled to take effect Sept. 1.

As it stands, the bill would apply to certain vehicles, aircraft and boats. The tax threshold is Canadian $100,000 for vehicles and aircraft, and Canadian $250,000 for boats.

The tax is determined as the lesser of 10 percent of the total purchase price and 20 percent of the exceeding price limit, according to the Canadian government.

According to an NMMA statement, members of parliament last week voted in favor of an amendment to the bill giving the government the ability to defer the implementation date for the tax, but only with regard to aircraft.

NMMA Canada president Sara Anghel cautioned both the House of Commons Finance and Industry and Technology committees that the tax could potentially cost thousands of jobs in the country’s boatbuilding segment.

“This is a complete assault on the boating industry,” she said, according to the statement, adding that the “tax will hurt the very middle-class families that the government is trying to help.”

NMMA Canada members recently met with more than two dozen members of parliament during the industry’s “Day on the Hill” to discuss the potential impact to the industry should it go into effect in September.

Soundings Trade Only will continue to monitor negotiations on Bill C-19. 

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