Finance, Taxes, Insurance
Canada Keeps Aircraft under Luxury Tax Umbrella
Tax is estimated to have caused the loss of 3,800 jobs and $1.1 billion in revenues

Canada’s 10% luxury tax on certain aircraft remained unchanged in the federal budget released last month, despite a second recommendation from Canada’s House of Commons Standing Committee on Finance (FINA) that the country’s new budget proposal “exclude aircraft from the luxury items tax act and place a moratorium on the luxury tax on aircraft pending further industry consultation.”

Reaction by the Canadian Business Aviation Association was immediate and firm. “We remain committed to educating and advocating on behalf of our industry regarding the true cost of the luxury tax on aircraft,” CBAA president and CEO Anthony Norejko told AIN. “In the end, it hurts Canadian jobs and our economic productivity.”

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