Canada will impose a new tax targeting luxury vehicles, including cars, boats, and private planes.The Select Luxury Items Tax Act was revealed as part of the Canadian government's 2022 budget measures and released last month, according to Robb Report. Going into effect on Sept. 1, it will apply to consumers purchasing new vehicles for personal use.
All new cars and aircraft priced over $100,000 will be subject to the Act, along with boats exceeding $250,000. The tax incurred is 10 percent of the full value of the item. It will also apply to "written sales agreements" from Jan. 1, 2022 onwards in a retroactive measure. Manufacturers, wholesalers, retailers, and importers must register under the act before selling or importing vehicles subject to the new tax. It's probably important to note that these thresholds are in Canadian dollars and that 100,000 of those is equal to about $77,777 USD as of this writing.
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