The Canadian Business Aviation Association said it will “continue its ongoing efforts to seek revisions” to the luxury tax on aircraft despite a recent decision that upholds its legality. In a September 26 response to the CBAA’s challenge to the tax, Canada’s Standing Joint Committee on the Scrutiny of Regulations “determined the Order [establishing the tax] does not violate any of its criteria and has closed the matter without further comment.”
This joint committee decision is the latest government action that failed to exempt aircraft from the 10% tax. The tax on certain aircraft remained unchanged in the current federal budget released earlier this year, although a second recommendation from Canada’s House of Commons Standing Committee on Finance stated 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.”
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