CBAA Fights Proposed 10 Percent Luxury Tax

 - October 8, 2019, 11:59 AM

The Canadian Business Aviation Association (CBAA) is leading a fight against the recently released Liberal Party platform's proposal for a 10 percent tax on “luxury” vehicles, including aircraft, costing more than $100,000. “It is important for us to turn this to our advantage and educate all political parties on how and why business aircraft of all types are not luxuries, but workhorses that drive profit and success,” CBAA said.

Prime Minister Justin Trudeau’s party platform, released Sunday, said the Liberals would ask “the wealthiest Canadians to pay a little bit more” if the party is re-elected on October 21. The party estimated the new tax would generate $585 million in revenue in the 2020 tax year, a figure that would rise to $621 million by the 2023 tax year.

Opposition leader Jagmeet Singh of the NDP party claims the Liberal Party’s plan to impose the new tax has “no credibility.” He dismissed the idea of taxing luxury goods as “a distraction.”

“We will be active in Ottawa to set the record straight and work to have this policy walked back, and we urge you to reach out to your local candidates to make sure they understand what is at stake,” CBAA told its members.