Finance, Taxes, Insurance
Canada Budget Eliminates Luxury Tax on Aircraft, Boats
10% assessment resulted in fewer aircraft sales in the country
O Canada panel session at CJI Miama 2025
Alisdair Whyte, CJI co-founder (left) with Ehsan Monfared, co-founder and COO of charter operator Flight Club and managing partner at YYZlaw, and Stan Kuliavas, v-p, sales and business development at Levaero Aviation, during the "O Canada" session at Corporate Jet Investor Miami. © AIN/Amy Wilder

Canada’s 10% luxury tax on aircraft and vessels has been repealed as of Wednesday, according to the Canadian Business Aviation Association. The Canadian government said the luxury tax proved to be “inefficient, costly to administer, and challenging for Canadian industries at a time of ongoing global economic uncertainty.”

The repeal of the luxury tax was a surprise announcement from panelists during the “O Canada”session at Corporate Jet Investor Miami 2025 this week. “About three-ish years ago, the Canadian government instituted a luxury tax on aircraft, essentially new aircraft, 10% on that,” said panelist and Levaero Aviation v-p of sales and business development Stan Kuliavas.

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