Consultation on proposed Luxury Tax
Current Status: Closed
In Budget 2021 the government proposed the introduction of a tax on the sales of new luxury cars and aircraft with a retail sale price over $100,000, and new boats over $250,000. The tax would be calculated at the lesser of 20 per cent of the value above these thresholds ($100,000 for cars and aircraft, $250,000 for boats) or 10 per cent of the full value of the luxury car, boat or aircraft.
This engagement process gave stakeholders and interested members of the public the opportunity to provide the Department of Finance with feedback on the design of the proposed luxury tax. The consultation ran from August 10, 2021 to December 2, 2021. Thank you to everyone who participated.
Key questions for consideration
Full details on the government’s proposed approach that served as the basis for this consultation can be found in the technical background paper The government sought views on several key design features, including:
- the detailed tax base;
- the application framework; and
- the registration rules.
Feedback received through this consultation will be considered to help inform decisions on the design of the proposed luxury tax. While this formal consultation has now concluded, Canadians are welcome to share their ideas and comments with the Department of Finance at any time.
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