New federal budget drops luxury tax on boats, aircraft (but not cars?)

rhc7gc6 said:
It also states "— the tax would still apply to sales of new cars —"
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Please forward this to François-Philippe Champagne......
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It's a shame if that is the case. Perhaps due to Trump's tariff war which is making a mess of Canad's auto industry. Why make it easier for the USA to sell their American automobiles ? Dropping the tax would have given a boost to auto sales in Canada. I know we are fans of Corvette but it's not hard to spend $100,000 plus on a vehicle. I own a Ford and a Chev and when they are in for service I might take a walk around the lot looking at window stickers. Not unusual to find the Corvette in the showroom is selling below other vehicles on the lot. Pickup trucks and SUVs can easily hit that magic number. I've seen Ford Broncos reaching close to $150,000. A pickup truck is not necessarily a luxury item when they live and work out of their truck. Anyway vehicles over a $100,000 are not a rare breed to find. I'm holding unto my much loved 2022 C8 but I might be swayed along with many others to trade up if that tax was dropped. A $150,000 Corvette is a $10,000 plus HST no value kick in the pants to your bottom line.
 
Leading up to the budget with the way Carney was talking about spending billions on "building" there was no indication that the luxury tax would go anywhere on cars, especially a reduction or limit change. Now they say this:

Luxury tax on aircraft and vessels​

The federal government imposes a tax on subject vehicles and subject aircraft with a value above $100,000 and subject vessels (e.g. boats) with a value above $250,000.

The budget proposes to amend the Select Luxury Items Tax Act to end the luxury tax on subject aircraft and subject vessels. All instances of the tax would cease to be payable after Nov. 4, 2025, including the tax on sales, the tax on importations and the tax on improvements.

Subject aircraft probably means commercial use, and subject vessels probably means boats used for commercial fishing and for business use.
Being $78 Billion in debt won't create the need to eliminate a cash cow like the luxury tax on personal cars any time soon.
 
The boat industry has crashed. People are refusing to buy boats with the luxury tax. The government will have to define what type of boats and planes are exempt. I was hoping the limit on cars would be increased to $250,000 to match boats but that would take millions of money away from the government on cars.
 
Steve Pringle said:
I guess there are still enough people willing to pay the luxury tax on cars. I am surprised, especially when it doesn't apply to used vehicles. I refuse to pay it.
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Good for you. I turned down my Z06 after submitting my paperwork to the gov't for a ruling on the luxury tax as I had time stamped proof and all the paperwork outlined as being required in the luxury tax act to be exempt. They ruled it didn't matter, the luxury tax would still have to be paid, so I said F You to the government and cancelled the order.
 
Awesome, I would have done exactly the same thing. I already pay 50% of my salary to those leaches, and they just throw it away. I then have to pay taxes like that on after tax income if I want something like a Z06. It's insane. I think the people that are paying it must have so much money that it's beer money to them or they are old and want the car before they die, which will be me soon. LOL
 
Steve Pringle said:
Awesome, I would have done exactly the same thing. I already pay 50% of my salary to those leaches, and they just throw it away. I then have to pay taxes like that on after tax income if I want something like a Z06. It's insane. I think the people that are paying it must have so much money that it's beer money to them or they are old and want the car before they die, which will be me soon. LOL
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Thank you for supporting us lower tax citizens! ;)
 
Steve Pringle said:
Awesome, I would have done exactly the same thing. I already pay 50% of my salary to those leaches, and they just throw it away. I then have to pay taxes like that on after tax income if I want something like a Z06. It's insane. I think the people that are paying it must have so much money that it's beer money to them or they are old and want the car before they die, which will be me soon. LOL
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Steve, not to mention HST also being charged on top of the luxury tax! For me to replace my car with the same in a Z06 without the $13,000 Carbon Fiber wheels was $100k more, it's just not worth it and I track my cars.
 
Mr.Corvette said:
Steve, not to mention HST also being charged on top of the luxury tax! For me to replace my car with the same in a Z06 without the $13,000 Carbon Fiber wheels was $100k more, it's just not worth it and I track my cars.
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I agree. I have some hobby cars I mess with so I'll just concentrate on that and other interests. The only problem is that I am getting to an age where crawling around on the ground under an old is not as much fun as it used to be. Was it ever really fun. LOL. You need to be a special type of relaxed easy going personality to work on old classic cars. Not me I guess. I have been thinking for a while that I should just sell them and buy a C8. 100 times better for the same money. I'll just let it ride until the used market drops more. It has come down quite a bit in the last while.
 

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