There’s a perception that wealthy people don’t pay their fair share of taxes, at least to the federal government, which will impose a so-called luxury tax Jan. 1 on vehicles costing more than $100,000.
Finance Minister Chrystia Freeland on the budget item released in April:
“If you’ve been lucky enough, or smart enough, or hard working enough, to afford to spend $100,000 on a car, or $250,000 on a boat – congratulations! And thank you for contributing a little bit of that good fortune to help heal the wounds of COVID and invest in our future collective prosperity. ...Those who can afford to buy luxury goods can afford to pay a bit more.”
According to the budget, the amount of tax is the lesser of 10 per cent of the full value of the vehicle, or 20 per cent of the value above $100,000.