The Canadian government unveiled its 2022 tax budget last month, which included a new luxury levy for any organization buying high-cost vehicles.
This week, the Canadian government released more details on how it will implement the tax, which goes into effect on September 1.
The Select Luxury Items Tax Act will apply to all new cars and aircraft with retail prices exceeding $100,000 and boats that cost more than $250,000.
The move would also apply the tax retroactively to any “written sales agreements” made after January 1, 2022.
The tax is a part of the new Bill C-19 law, which includes several other corporate tax measures.
Various experts have criticized the bill, with some predicting it could result in the loss of at least 900 jobs.
According to a Legislative Costing Note by the Parliamentary Budget Office, the tax would generate $600 million in revenue over five years. »