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- “Historically, these taxes have never achieved their main goal, which is to raise revenue, and are considered to be ineffective,” he said. “It will be detrimental to the industry, and particularly now amid the pandemic with the sector hard hit and down 20 per cent in 2020. Now is not the time to introduce a new tax, when the auto sector is trying to recover from the crisis.” - Source: Internet
- A report from Scotiabank suggests the luxury tax may not meet the government’s expectations. The report analyzed British Columbia’s implementation of a provincial sales tax on vehicles costing more than CA$125,000 ($98,700), adding up to 20 per cent to the sales price. Luxury car sales quickly fell after the tax’s implementation, experiencing a five per cent year-over-year contraction despite reporting growth of above 10 per cent year-over-year before the tax was implemented. - Source: Internet
- A report from Ottawa’s Parliamentary Budget Officer suggests that the tax could raise CA$572 million ($451 million) for the government through the 2026-27 budget year. However, the PBO report suggests the tax will also reduce sales of new luxury vehicles by up to CA$566 million ($446 million), or approximately CA$125 million ($98 million) annually over the 4.5-year period analyzed. - Source: Internet
- “The impact of the COVID recession has been very uneven. Some Canadians have lost their jobs or small businesses, while some sectors of the economy have flourished. That’s why it is fair today to ask those Canadians who can afford to buy luxury goods to contribute a little bit more. To that end, the recent budget followed through on the government’s commitment to introduce a tax on select luxury goods,” the statement said. - Source: Internet
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