Feb 11, 2020

Luxury TaxOur industry needs everyone to raise their voice in opposition to the ill-considered Liberal Luxury Tax proposal.

The NMMA has shared results from the American introduction of a luxury tax in the early 1990s and the data should help persuade our government that this will be ineffective and overall, damaging to the industry and negative to their tax revenues. The American example showed that:

• U.S. Government projected to collect $31 million from the boat luxury tax
• Sales dropped and only $16 million in luxury tax was collected
• Job losses cost the government $24 million in unemployment insurance and loss of tax revenue
• One boat manufacturer went from 1400 employees to 90
• A net loss of $8 million vs planned gain of $31 million
 
At the NMMA Canada Recreational Boating Industry Breakfast, Sara Anghel asked for a show of hands to see how many people in the audience, had mailed their MPs to oppose the Luxury Tax. Only a few people had sent letters. Yet, the boating associations had provided their members with pre-made form letters they could use. Actually sending a letter would take very little time or effort.

If we don’t even attempt to oppose this tax, we can’t hope for a positive result. And, anyone who checked out the price tags at the boat show knows that a $100,000 boat is not a big or luxurious boat.

Boating Ontario CEO Rick Layzell wrote to his members, “The Toronto International Boat Show wrapped up on Sunday, January 26th and after a challenging opening weekend snow storm, the crowds thundered back making for a strong retail sales closing weekend. Retail results were a mix of good to great with a noted emphasis on fiberglass sales in several key categories. After speaking with dozens of dealer principals and sales personnel, it is worth noting that not a single consumer spoke to any of these retailers regarding the proposed luxury tax. This supports the recommendation of all trade associations that we continue to battle this proposal from the industry and not in front of the consumer at this time.” Rick Layzell, CEO, Boating Ontario 

We urge all members to continue with their local political community communications during this critical pre- budget period regarding the proposed 10% luxury tax on boats over $100,000. We continue to demonstrate to government that luxury taxes have failed all over the world including the United States, Italy, Norway and New Zealand as consumers simply diverted their spending to other forms of recreation and the governments collected less net taxes. Our “ask” is that recreational boats, that bring families together just like other recreational vehicles, be excluded from this proposal. 

Follow-up requests have been sent out to meet with the Minister of Finance, Bill Morneau and the Minister of Innovation, Science and Industry, Navdeep Bains and we expect to meet with them in the near future. Following is a list of meetings that have taken place since January 20th:

• Ken Hardie, MP Fleetwood-Port Kells (Liberal MP who does not support the luxury tax and met with Boating BC and has provided our concerns to Minister Morneau)
• Chief of Staff to Carla Qualtrough, MP Delta
• Andy Fillmore, MP Halifax (Liberal MP meeting with Boating Atlantic and does not support tax)
• Honourable Lisa McLeod, Minister of Tourism Ontario
• Norm Miller, MPP Parry Sound—Muskoka (Member, Standing Committee on Public Accounts and Parliamentary Assistant to the Minister of Intergovernmental Affairs)
• Billy Pang, MPP Markham—Unionville (Member, Standing Committee on Public Accounts and Parliamentary Assistant to the Minister of Intergovernmental Affairs)

The industry is reminded and encouraged, to fill out the pre-budget consultation survey; go to this link and make a submission on behalf of your business. https://www.budget.gc.ca/2020/prebudget-prebudgetaire/index-en.html

The Industry will assemble in Ottawa for Recreational Boating Day on the Hill at the end of February where the industry will request to meet with over 150 MPs, Ministers and departmental staff. 

All of Canada’s boating industry associations will continue to provide updates on a weekly basis regarding our efforts on the luxury tax.

BIC Twitter

 

Boating Industry Canada is now on Twitter @BICnewsletter. We are interested in interacting with you as you are an integral part of the Canadian marine industry. Next time you're online please give us a nudge; we'll follow you back. Our e-News goes out weekly, across Canada, reaching every sector of the marine industry. If you have a newsworthy item please send it anytime and we will consider it for inclusion in our next issue. We'll be Tweeting from locations and events across the county on a regular basis.

Please join our conversation! www.twitter.com @BICnewsletter

 

 

 

Boating Industry Canada News Week

 

Every Tuesday we publish a fresh newsletter with informative articles pertaining to the Canadian boating and marine industry. Stay up to date with the latest products, research and industry developments.

Missed an Issue of Boating Industry Canada News Week? If you're looking for a specific issue, or simply want to catch up on previous issues, check out our Boating Industry Canada Archives.

Not signed up for News Week? Subscribe here

 

 

 

 

 

Changing Scene

  • Prev
AkzoNobel is set to enhance support for Awlgrip and Interlux yacht coatings throughout US ...
The 2019 Canadian Safe Boating Awards (CASBAs) were held Sunday, Jan 19th in ...
The show guide also lists activities in both show locations (BC Place and ...
Michael Vollmer of Vollmer Marine Consulting is the 2020 NMMA Hall ...
NMMA has announced that it is entering a Memorandum of Understanding (MOU) with Transport ...
Brad Thomson, General Manager at MacDonald Turkey Point Marina sent us this letter reporting that ...
Brunswick Corporation (NYSE:BC) will showcase its technology leadership in recreational ...
Boating BC is now accepting applications for the 2020 grant and scholarship program that supports ...
Just before Christmas, we received the following email from Parks Canada regarding a Request ...
Jeanneau America has announced that world-renown American yachtsman and North Sails President Ken ...

MICHAEL VOLLMER, LONG-TIME MARINE ARCHITECT NAMED NMMA CANADA 2020 HALL OF FAME INDUCTEE

Michael VollmerMichael Vollmer of Vollmer Marine Consulting is the 2020 NMMA Hall of Fame Inductee. 

The announcement was made at the NMMA Canada Boating Industry Breakfast on Tuesday. 

A marine architect, Michael had over 40 years in vessel design (power and sail), and a vibrant consulting service for technical and design solutions. 

 

 

Read More about the Michael Vollmer...........

 

 

NEW SIKA® MARINE RETAIL PROGRAM MAKES PROFESSIONAL GRADE SEALANTS, ADHESIVES AND COMPOSITE REPAIR PRODUCTS AVAILABLE TO BOAT OWNERS

SIKA Marine Retail ProgramRepresented by Ocean Marketing, Sika Marine now offers a comprehensive retail program that for the first time makes the Sika range of professional sealants, adhesives and composite repair products available to boat owners.

Innovative, attractive retail packaging and merchandisers feature the same Sika products trusted by boat builders and repairers, including elastic sealants & adhesives, structural bonders, epoxy fairing compound and lamination systems, gelcoat repair and repair fillers.

Read more about the SIKA Marine Retail Program............