Canada’s luxury tax on high-end vehicles, yachts, and private aircraft brought in $137 million this year, but it cost $19 million to collect.
The information was released by the government in response to an Inquiry of Ministry submitted by Conservative MP Scot Davidson in May in which he asked for information about the number of luxury items reported under the Select Luxury Items Tax and how much it cost the Canada Revenue Agency (CRA) to manage the tax.
“It cost the CRA a total of $19 [million] as of March 31, 2024, to implement and administer the luxury tax, including the amounts paid for the employee benefit plan and other indirect costs,” the CRA said in a June response to the question. The agency said the amount includes money paid for employee benefits and other indirect costs….