Canada has now formalized its intent to impose a “luxury tax” on new “personal” aircraft and it will be tacked on to virtually every factory-fresh plane sold in the country, assuming it’s enacted. The Justin Trudeau Liberal government included the tax in its budget tabled earlier this week and as written will add tens of thousands of dollars to the cost of even the most basic general aviation aircraft. The government has set the luxury limit for aircraft at $100,000 CAD and there are few new aircraft available at that price, which is currently about $80,000 USD. It is calculated at the lesser of 10 percent of the full value of an aircraft or 20 percent of the value more than $100,000. For a $600,000 CAD Cessna 172, that would be $60,000 plus up to $7,800 in federal and provincial sales and value-added taxes.
This is a companion discussion topic for the original entry at https://www.avweb.com/aviation-news/canada-moves-forward-on-aircraft-luxury-tax