In an unusual turn of events north of the border, Canada’s new government is poised to lift a 10% “luxury tax” on the sale of new aircraft valued at more than $100,000 CAD or about $70,800 USD. The tax was imposed just two years ago in a “tax the rich” move by the previous government led by Prime Minister Justin Trudeau. Lifting the tax is included in the first budget of his successor, Mark Carney, and is considered an economic stimulus by the new government. The budget, which is expected to pass today, is full of austerity measures as the government tries to shore up and diversify Canada’s economy in the face of constantly changing tariffs and other measures from the U.S., its largest trading partner. The tax will be lifted the day after the budget passes a vote in the Canadian Parliament.
The budget also contains a measure to transfer a fleet of 38 aircraft currently operated by Transport Canada to the Canadian military. The fleet includes 13 fixed-wing aircraft and 25 helicopters deployed across the country in a variety of roles. The government was unable to comment on how the transfer will work or whether military pilots will fly the aircraft. The move is part of Transport Canada’s requirement to cut its budget by $1.4 billion. “TC’s aviation services, which provide a range of aviation services to government departments and agencies, will be restructured, transferring most core aviation services, functions and assets to the Department of National Defence, while seeking to leverage commercial offerings where appropriate,” the budget document says. “The high standard of training and certification of pilots will be maintained, with no impact on commercial and non-commercial pilots in Canada.”
The so called “luxury” tax only applied to new aircraft purchases not used aircraft.
Canada is like Venezuela North, its citizens are way too taxed and poor to purchase new anything let alone new aircraft. I am guessing this tax probably didn’t raise enough money to justify the cost of administering it. It had nothing to do with “stimulus” or giving back to taxpayers.
“Canada is like Venezuela North”– Yes you are right and yes we do have oil!
The previous government passed this vindictive tax to appeal to a small segment of the electorate to try and form a majority government that didn’t happen with the support of the Liberal and NDP MLA’s who were basically blind sycophants and desperate to stay in power. It looks like the present government is regaining some degree of sense and hopefully stop creating division in this country. Time (and the Budget) will tell.