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Feds launch consultations on proposed Luxury Tax

Tuesday, August 10, 2021 @ 2:12 PM | By John Chunn

The federal Department of Finance on Aug. 10 announced it is launching consultations with stakeholders on the design of a proposed Luxury Tax.

This proposed Luxury Tax would apply on the sale of new luxury cars and aircraft with a retail sale price over $100,000, and new boats over $250,000. The tax would be calculated at the lesser of 20 per cent of the value above these thresholds ($100,000 for cars and aircraft, $250,000 for boats) or 10 per cent of the full value of the luxury car, boat or aircraft. The tax is proposed to come into force on Jan. 1, 2022.

Full details on the government’s proposed approach can be found here. Stakeholders are invited to provide their views on the government’s proposed approach by Sept. 30, 2021.