Once Again, Politicians Believe "Private Planes" are Far More Luxe Than Reality

Last year, Canada included a proposal for a new tax on the sale of luxury autos and aircraft with a retail price over $100,000, and new watercraft over $250,000. 

The Canadian Owners and Pilots Association has spoken at length on the issue, attempting to explain to legislators the fact that $100,000, or $80,000 USD, doesn't quite buy an equivalent amount of luxury between the automotive and aeronautical world. The tax would be calculated at the lesser of 20% of the value above the price thresholds, or at 10% of the full value of the vehicle. Should Parliament approve the tax, it will go into effect on September 1, 2022. 

Ottawa has released the draft legislation for public comment, stating they will take public input into consideration with the final version. They have explained that the proposal builds on the older, more vague background information document they released in August of 2021. The new draft proposal replaces the older work, alleviating concerns regarding its less rigorous framework to implement the luxury tax.

The Association has made some headway on changing some minds, seeing a couple changes to the draft, including a pair of particular interest to aircraft owners and operators. "Relief is proposed to be provided to after-sale improvements that are made to vehicles," said COPA. "Aircraft or vessels purchased below the relevant price threshold; and relief for aircraft is proposed to be expanded to take into account qualifying flights that are conducted in the course of a business with a reasonable expectation of profit."

COPA reminds aviation stakeholders to share their comments on the draft via the government email by April 11.

FMI: www.copanational.org