Join in: Open until September 30
The impact of the COVID recession has been very uneven. Some Canadians have lost their jobs or small businesses, while some sectors of the economy have flourished. That's why it is fair today to ask those Canadians who can afford to buy luxury goods to contribute a little bit more. To that end, the recent budget followed through on the government's commitment to introduce a tax on select luxury goods.
The budget proposal would introduce a tax on the sale 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. The tax is proposed to come into force on January 1, 2022.
Through this consultation process, the Department of Finance is seeking feedback on the design of the proposed Luxury Tax.
Full details on the government's proposed approach can be found in the technical background paper. Specifically, the government is seeking views on several key design features, including:
The department is seeking the views of all stakeholders. Interested members of the public are also invited to provide input.
In submitting your comments, please include:
Due to COVID-19 public health considerations, email submissions are preferred. Send us your comments at fin.luxury-luxe.fin@fin.gc.ca with "Luxury Tax" as the subject line.
Should you wish to provide comments by mail, please direct your submission to the attention of the Tax Policy Branch.
Information received through this comment process is subject to the Access to Information Act and the Privacy Act. Those providing comments are asked to indicate clearly the name of the individual or the organization that should be identified as having made the submission. In order to respect privacy and confidentiality, please advise when providing your comments whether you:
Should you indicate that your comments, or any portions thereof, be considered confidential, the department will make all reasonable efforts to protect this information.
Feedback received will be taken into consideration for the purposes of finalizing the design of, and drafting the legislative proposals for, the proposed Luxury Tax. It is anticipated that the legislative proposals in relation to the Luxury Tax regime would subsequently be included in a bill to be introduced in Parliament.