Conservative forces have condemned the Trudeau government’s luxury tax following a parliamentary budget officer (PBO) memo released today.
The Conservative Party of Canada (CPC) said in a statement on Thursday that the new tax proposed by the Liberals would “lose more than $ 2.8 billion in sales in five years, a 15% reduction that would destroy Canada’s auto, entertainment, boating and aerospace sectors”.
Although the PBO estimates that the tax on luxury goods sales will increase revenue by $ 158 million by 2023-2024, Conservatives are worried about its impact on the country’s economy.
Conservatives go so far as to say, “This new tax will result in the loss of jobs, the loss of economic opportunities and the reduction of capital investment when we need it.”
Ship over $ 250,000
In May 2021, (PBO) released a note to estimate the tax value on sales, already during sales of automobiles and aircraft worth over $ 100,000 and ships worth over $ 250,000.
This also applies to new vehicles from September 1st. Its rate is between 10% and 20% of the production value.
“We expect a change in behavior. The true scope of this change is uncertain and will depend on the sensitivity of consumer prices,” Parliamentary Budget Officer Yves Giroix wrote in a note.