In the recent federal budget, the Government announced its plans to introduce a luxury tax on select goods such as cars, personal aircraft and boats. This measure would come into force on January 1, 2022. To that end, the Government of Canada will hold consultations with stakeholders (members of the public who purchase these luxury goods). The consultation period will last until September 30, 2021.
The proposed luxury tax would apply to the sale of new cars and aircraft with a retail sale price of over $100,000 and new boats over $250,000. The tax would be calculated either at 20% of the value above those thresholds ($100,00 for new cars and aircraft or $250,000 for boats) or 10% of the full value the product.
If non-registered importers import these goods, the luxury tax would be payable at the border to the CBSA at the time of import in most situations. The tax liability falls upon the non-registered importer
You can read more about the proposed luxury tax here:
PaYou can share your thoughts on the proposed tax by emailing [email protected] with “Luxury Tax” as the subject line. Should you wish to send your feedback by mail, please send it to the Tax Policy Branch.