Luxury tax scaled back: ‘We really underestimate the wealth that exists in the Canadian economy’ - BNN Bloomberg
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Article Excerpt
MONTREAL — A luxury tax on cars, planes and boats yielded more than $900 million before it was scaled back amid concerns about the negative effect on manufacturers.
In the two fiscal years between 2023 and 2025, the tax on pricey conveyances was pouring nearly $390 million a year into federal coffers — well over double the forecast from the Parliamentary Budget Office — according to figures obtained through an access-to-information request by The Canadian Press.
Backers of the tax say the windfall amounts to an unexpected success that vindicates the full levy and shows that wealthy individua…
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