LUXURY TAX SURVEY – Perception is Reality
Dec 21, 2021
Last week in my Boating Industry Canada News Week Editor’s Message I asked, “What is your plan for managing Canada’s new Luxury Tax on boats?” Please take a few minutes to answer the short survey we have prepared. The link is at the end of this message.
The issue that concerns me is that Canadians will see this new Luxury Tax as a targeted, unreasonable and substantial added level of taxation, (well it is, isn’t it?). From my lobbying meetings in Ottawa with all the Marine Trades Associations, the government clearly was concerned about tax avoidance.
The easy way to avoid getting “stung” by what people will likely view as unfair taxation, will be to NOT buy a boat. Problem solved. Spend your discretionary vacation money on other things.
In the marine industry, we should be very concerned that just when the market has really woken up to boating as a great vacation option; just when we can sell every boat we can get, the government is set to really turn people off boating with new, heavy targeted taxation.
We are just entering boat show season with the Toronto International Boat Show opening January 22 – OOPS!
COVID suddenly has forced a last-minute cancellation of the in-person show. I got that news about 10pm last Friday. Saturday, I got the news that the in-person Vancouver International Boat Show was also cancelled. As the new Federal budget, including the Luxury Tax gets hammered out in Ottawa in the New Year, it will be in the news, especially since it also hits cars, trucks and private aircraft.
Losing the in-person opportunity to discuss and explain this new tax to your customers at the boat shows is very unfortunate. Getting the bad news out and dealing with it in-person, is always the best way. We don’t want people getting bad news and not hearing from us.
In fact, for many buyers, the Luxury Tax will not hit them. Used boat buyers will not get hit either. And, for buyers who are at, or above the $250,000 threshold, the added cost may not be that bad. But, the negative perception may be. So, lets learn what the industry thinks and what they plan to say.
We will share the results in the next Boating Industry Canada News Week. We especially want your input as suppliers, as service companies and as marinas. This is not just about the small number of businesses selling high-end new yachts. We will all be affected. Perception is reality.
CLICK THIS LINK TO START THE SURVEY
Thank you!
Andy Adams – Editor
