Luxury tax may cost Canadian industry big with $3B hit to economy: PBO

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Legislation to impose a luxury tax on new cars, boats and aircraft will create about $779M in new tax revenue over five years, but also impact future sales of…

Forecasted sales of luxury cars, planes and boats in Canada are expected to drop 15 per cent over the next five fiscal years, the note predicts — a projected hit to the economy of around $2.88 billion.Article content

Draft legislation published in March requires those involved in the sale or import of luxury vehicles, planes or boats to register with the federal government — allowing both the tracking of sales and imposition of the new luxury tax. The entire amount is also payable at the time of sale or import into Canada, regardless if it was purchased outright or over time.

Motor vehicles subject to the luxury tax must carry retail prices exceeding $100,000, be equipped to accommodate fewer than 10 passengers and weigh under 3,856 kilograms.

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“Actual sales volumes for vehicles in this tax base are not known” - so the report has no idea what it’s talking about then?

Seven years in and the Trudeau Liberals are still NotReady. cdnpoli

I get the point but inevitably the result will be a loser for Canada. The rich never pay. Maybe what they should do is enforce the laws on the books instead of doing everything they can to destroy our economy.

Keep voting Liberal. They won't stop until there is nothing left in your pocket. NOTHING LiberalismIsAMentalDisease TrudeauNationalDisgrace

THE ECONOMY HAS NOT IMPROVED OUR QUALITY OF LIFE IN HUNDREDS OF YEARS! BILLIONAIRES AND SHARE HOLDERS ARE THE ROOTS OF THIS EVIL.

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