The Liberal government introduced a tax on high-end vehicles, yachts, and private aircraft in 2022, but Prime Minister Mark Carney’s newly released federal budget now proposes its removal.
Budget 2025 would get rid of the luxury tax on aircraft valued at more than $100,000 and boats valued at more than $250,000, but appears to leave the tax on vehicles valued in excess of $100,000. That same tax was first floated by the Liberal government in early 2021 under then-Prime Minister Justin Trudeau, and officially became law in September 2022.
While the government says the new measure will “provide relief to the aviation and boating industries,” the tax initially focused on making top-earning Canadians pay more to “contribute their fair share to a stronger economic recovery.”…