Here we go again…
Apr 27, 2021
A year and a half ago we were fighting the probability of a luxury tax on boats and I was among the delegation of industry members who travelled with the NMMA Canada to their Day on the Hill event where we got to meet with many important members of the government to oppose the threat of a luxury tax on boats.
At that time, the tax threshold the government had floated was $100,000, but in our meetings, it quickly became apparent that many of the politicians had no idea what a boat cost. One MP gave me a friendly smile and said, don’t worry; a $100,000 boat is a 50-footer and no one has a boat like that.
The NMMA Canada had prepared a very clear infographic to present in the meetings and in it was a photo of an aluminum fishing boat that would retail at $100,000. The surprised looks on the politician’s faces clearly gave away their lack of knowledge about our industry.
So, here comes the Luxury Tax on boats again, but this time it’s $250,000. The NMMA’s lobby efforts were successful in moving the tax threshold up to a level where most family, or cottage type boats will not be hit, but there are few cruisers, or keel boats that come in under the $250,000 mark.
This tax is proposed for introduction in January 2022 and the only good thing I see at this point is that we have seven months to prepare.
First, it is very important that you support the NMMA Canada and your marine trade association in their lobby efforts. The government is much more likely to listen and act when the boating industry is speaking with one strong voice. The NMMA is running a Survey of their members to establish some real data around this issue. Boating Industry Canada News Week Digest will also be gathering input from you, our readers in the coming weeks. We need to be ready to do whatever it takes to mount a really solid opposition to this new tax.
COVID-19 has given the boat business a very challenging environment with powerful new market momentum, but also with stock-outs and product delays that will make it harder to take advantage of sales opportunities in the short term. To get a build slot for 2022 product may not be worth much on more valuable boats depending on how great the cost impact will be.
Let’s do everything we can to support the associations that are supporting you.
Andy Adams – Editor
