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. A total of 71 aircraft were reported under the luxury tax, primarily from Ontario and Quebec, according to the government response. Additionally, about 73,000 vehicles and 400 vessels were also reported.
The luxury tax was first mentioned in the government’s 2021 budget but did not come into effect until September 2023. It applies to the sale of new luxury vehicles and aircraft priced over $100,000, as well as boats costing more than $250,000. “We actually had industry come and say the tax will harm industry and will push business to the United States and other places,” he said.
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