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Analysis shows Canada’s proposed luxury tax will have heavy impact on marine industry

Industry News, News | December 20, 2021 | By:

A recent economic analysis, “An Economic Evaluation of the Proposed Luxury Boat Tax,” conducted by Jack Mintz, Ph.D., at the School of Public Policy at the University of Calgary, in conjunction with Fred O’Riordan at EY Canada, concludes that Canada’s proposed luxury tax on new boats will collect little revenue while threatening middle-class jobs across the country, according to the National Marine Manufacturers Association. The economic analysis finds the luxury tax would lead to a minimum CA $90 million decrease in revenues for boat dealers and potential job losses for 900 full-time equivalent employees (FTE).

The Canadian government announced in the budget last spring that it plans to introduce a tax on select items, including new boats above CA $250,000, beginning in 2022. The government has not yet confirmed the date the tax will take effect.

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