Let’s Get Going!
November 11, 2025
The big excitement this week was that the Budget put forward by the Carney Liberals on November 4th included ending the Luxury Tax on boats that the Trudeau Liberals.
Introduced in in 2021, and that took effect in September of 2022. Consumers saw this as unfair and very expensive. Most boat buyers refused to pay it. The sale of new boats priced above the $250,000 threshold all but stopped and significant job, as well as tax revenue losses, resulted quickly. After a painfully long wait, on November 4th, we got the news that the new Budget would end the Luxury Tax, but it was not clear to me that it would be official until the budget was approved.
On Friday, November 7th, I received an email from Marie-France MacKinnon the Executive Director at NMMA Canada who wrote to make sure that we clarified the news about the Luxury Tax. She wrote, “To be clear, the Luxury Tax on boats is no longer applicable in Canada. The removal of the Luxury Tax does not currently require a vote in the House of Commons.”
Her email continued, “Although the Luxury Tax must technically be repealed through formal legislation, the Government of Canada has taken a critical step by tabling what’s known as a Ways and Means Motion. This motion signals the government’s clear intent to remove the tax, and that signal is sufficient for the Canada Revenue Agency (CRA) to stop collecting it.”
As a result, the last day the Luxury Tax was payable on boats was November 4, 2025. Effective November 5, 2025, the Luxury Tax no longer applies.
NMMA and CMRA have received confirmation directly from officials within the Finance Minister’s Office that they consider the tax to be removed.
This is a significant win for Canada’s boating industry and a moment to celebrate the success of our collective advocacy. With the tax now behind us, it’s time to focus on what we do best—getting Canadians back on the water and selling boats in this important market segment!
Hopefully, dealers either have inventory or can access new boats from the boat builders. My recent trip to the Fort Lauderdale Boat Show left me with the clear impression that many exciting new boats are coming on the market. Getting in touch with your customers quickly, may put you near the head of the line for new boat orders.
I heartily congratulate the NMMA Canada and the Canadian Marine Retailers Association, CMRA for this very important win. Also, our collective thanks to everyone who supported the associations and shared their sales data and their stories. It all helps!
Andy Adams – Editor
