UPDATE ON THE FEDERAL GOVERNMENT’S PROPOSED 10% LUXURY TAX ON BOATS

Jan 21, 2020

The Federal government’s proposed 10% luxury tax on boats over $100,000 is a priority action item for all of us in the boating industry. We urge all members to continue their local political community communications during this critical pre budget period. Our position is 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 do, be excluded from this proposal.

We have requested to meet with the Minister of Finance, Bill Morneau and the Minister of Innovation, Science and Industry, Navdeep Bains and expect these meetings to be accepted shortly. Following is a list of meetings that have taken place on your behalf as we continue to fight for you:

Dominic Cormier, Policy Advisor Prime Minister’s Office · Bernadette Jordan, MP South Shore-St. Margarets & Minister of Fisheries & Oceans · Kate Young, MP London West · Elizabeth May, MP Saanich-Gulf Islands · Director General of the Sales Tax Division, Tax Policy Branch & his policy staff · Patrick Weiler, MP West Vancouver—Sunshine Coast—Sea to Sky Country · Mona Fortier, MP Ottawa—Vanier & Associate Minister of Finance & Middle Class Prosperity · Scott Aitchison, MP Parry Sound—Muskoka · Luc Berthold, MP Mégantic—L’Érable · Ken Hardie, MP Fleetwood- Port Kells · Brad Vis, MP Mission—Matsqui—Fraser Canyon · MPs have been flooded with letters from businesses across the country and all of us collectively as Marine Trade Associations, MP Saanich—Gulf Islands

Along with these meetings we will do:

• Submit Pre-Budget Comments to the government – Industry is also 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
• Targeted media campaign – Opinion article on ‘luxury tax’ in political publications including the Hill Times and iPolitics which are read by Ottawa government staff
• Recreational Boating Day on the Hill (End of February) where the industry will request to meet with over 150 MPs, Ministers and departmental staff

The NMMA Canada and our marine trade associations will continue to provide updates on a weekly basis regarding our efforts on the luxury tax.