CRA numbers show luxury tax destroys jobs and hurts local businesses
by National Marine Manufacturers Association 26 Jul 2024 08:12 NZST
Canadian flag waving with Parliament Buildings hill and Library in the background © National Marine Manufacturers Association
The recent revenue results released by the Canada Revenue Agency (CRA) since the luxury tax's September 2022 implementation confirm the marine industry's dire predictions of a significant market disruption. Despite strong opposition by the recreational marine industry, the luxury tax implemented an additional 10% tax on boats more than $250,000.
Across Canada, recreational boating creates more than 75,000 jobs that support more than 4,800 businesses. Roughly 60 percent of boat owners have a household income of less than $100,000.
"NMMA Canada manufacturers have repeatedly expressed their concerns about lost jobs, a significant decrease in consumer demand, and an increase in the cost of doing business due to this onerous tax," said Marie-France MacKinnon, executive director of the National Marine Manufacturers Association (NMMA) Canada. "The 1991 U.S. luxury tax failed and was repealed. We are now witnessing a similar scenario unfolding in Canada. To protect Canadian boat builders, workers, and consumers, the luxury tax needs to be repealed."
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