Consultations on proposed Luxury Tax launched

luxurytax
A tax on select luxury goods was introduced in the recent budget. This proposed luxury tax aim help address the uneven impact of the COVID recession. Some sectors and some Canadians have flourished during the pandemic while some have lost jobs and businesses. Because of this, the government introduced the tax on some luxury items in an effort to ask Canadians who can afford to buy luxury items to contribute a little bit more.

This proposed Luxury Tax will apply on the sale of new luxury cars and aircraft with a retail sale price of over $100,000 and new boats over $250,000. The tax would be calculated at the lesser of 20% of the value above these thresholds or 10% of the full value of the luxury car, boat or aircraft. The tax is proposed to start on January 1, 2022.

Starting August 10th until September 30th, 2021, the Government of Canada will be open to receiving the views of stakeholders on the design of the proposed Luxury Tax.

For more details, please click on this link: https://www.canada.ca/en/department-finance/programs/consultations/2021/consultation-proposed-luxury-tax.html
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