The proposed federal luxury tax, expected to be enacted Sept. 1, will reduce sales of luxury vehicles in Canada by more than half a billion dollars over the next five years, according to a new estimate from Ottawa’s Parliamentary Budget Officer (PBO) Yves Giroux.
The PBO assessment, released May 26, follows the government’s tabling of its latest budget implementation bill in Parliament April 7. The luxury tax bundled into Bill C-19 is the result of a 2019 Liberal campaign promise and lengthy consultations with industry.