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.

Our objective

Through this consultation process, the Department of Finance is seeking feedback on the design of the proposed Luxury Tax.

Key questions for consideration

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 detailed tax base;
  • the application framework; and
  • the registration rules.

Who is the focus of this consultation?

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:

  • full name and official title;
  • name of the organization;
  • telephone number, including area code; and
  • reply email address.

Participate through email

Due to COVID-19 public health considerations, email submissions are preferred. Send us your comments at 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.

Treatment of confidential information

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:

  • consent to the disclosure of your comments in whole or in part;
  • request that your identity and any personal identifiers be removed prior to release; or
  • wish that any portions of your comments be kept confidential (if so, clearly identify the confidential portions).

Should you indicate that your comments, or any portions thereof, be considered confidential, the department will make all reasonable efforts to protect this information.

What's next?

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.

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