Earlier this week, the Canadian government posted a notice of the final legislation containing the luxury tax, with some changes and wins for the recreational boating industry.
The new, final legislation signals all deals signed before 2022 (by December 31, 2021) will now be exempt from the luxury tax, regardless of delivery date. You may recall the draft version of the legislation had only exempted deals inked before April 20, 2021.
In a message from NMMA Canada president Sara Anghel, she said that this major concession is in direct response to concerns voiced by NMMA Canada, the MTAs and marine companies with Finance political staff and officials. This is in addition to the government previously responding to our advocacy and raising the price threshold for boats from $100,000 to $250,000.
“While the luxury tax is still coming into effect, we can take a moment to celebrate these two wins that will protect revenue and jobs in our industry,” Anghel said in her address.
You can find a copy of the legislation here (see page 259 of the PDF).