The Canadian government is pressing ahead with implementing a new luxury tax on the sale or importation of select luxury items, which is to come into force on 1 September. The luxury tax applies to certain vehicles and aircraft priced above CAD100,000 and certain vessels priced above CAD250,000. It will be calculated at 10% of the full retail value of the vehicle, aircraft or vessel, or 20% of the value above the threshold, whichever is lower.

“The economic impact of the luxury tax will be significant and [has] not been studied with a comprehensive understanding of our industry,” said Anthony Norejko, president and CEO of the Canadian Business Aviation Association.