The luxury vehicle and aircraft tax went into effect on Thursday.
The new tax applies to the sale and importation of subject vehicles whose price or value exceeds $100,000.
However, the tax might also apply in the case that a person registers a subject vehicle whose price exceeds the determined threshold, according to the law firm DS Avocats Canada.
In addition, “the luxury tax will apply if a person who holds, tax-free, inventory of subject vehicles whose value exceeds the determined threshold ceases to be a registered seller of subject vehicles”, specified the firm. of lawyers.
Ottawa projects revenues of $163 million in 2023-2024 with a 10% to 20% tax on automobiles and aircraft over $100,000 and on ships over $250,000.
The entry into force of this new tax is likely to cause an explosion of car prices in a market won by overheating prices.
