Finance, Taxes, Insurance
Canada Luxury Tax Stays As Is in New Budget
The rate remains static despite recommendations from legistlators

Canada’s 10% luxury tax on certain aircraft remained unchanged in the new 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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