Finance, Taxes, Insurance
AIAC Refutes Government Report on Canada’s Luxury Tax
The Aerospace Industries Association of Canada claims a government report underestimates the negative effects the new luxury tax will have on aviation.
Pratt & Whitney Canada manufacturing line
The Aerospace Industries Association of Canada estimates that Canada's new luxury tax will lead to the loss of nearly 3,000 jobs in the aviation industry. (Photo: Pratt & Whitney Canada)

The Aerospace Industries Association of Canada (AIAC) is refuting a recent report from Canada’s finance department that projects the new federal luxury tax could lead to between 400 and 870 job losses by aviation, auto, and boat manufacturers. Instead, the AIAC has projected that the tax will lead to the loss of nearly 3,000 jobs in the aviation industry alone.

The 10 percent tax, effective since September 1 last year, is imposed on the sale of new vehicles and aircraft priced at $100,000 and above and on new sea vessels selling for $250,000 or more.

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