March 22, 2022 Finance Releases Draft Legislation for Luxury Items Tax

On March 11, 2022, the Department of Finance released for public comment draft legislative proposals, which would implement a tax on select luxury goods in accordance with the Select Luxury Items Tax Act. The proposals also contain a number of consequential amendments to other acts.
The luxury items tax would generally apply to supplies in Canada, as well as importations into Canada, of new vehicles and new aircraft priced over $100,000 and new vessels priced over $250,000. The tax would come into effect on September 1, 2022, subject to Parliamentary approval.

The Department of Finance has invited Canadians to provide comments on these proposals by sending
an email to The deadline for submissions is April 11, 2022.
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