Retail

Federal luxury tax is coming, and dealers warn the pain will be real

Jaguar Land Rover Sign
From the tax’s scheduled implementation date midway through the 2022-23 budget year until the 2026-27 budget year, the PBO estimates luxury-vehicle sales will average $666 million a year. (GREG LAYSON)
June 21, 2022 12:01 PM

The federal government continues the march toward its Sept. 1 target to enact a new luxury tax on vehicles that cost more than $100,000, despite stiff opposition from dealers and a warning from Ottawa’s budget watchdog that the tax would cause luxury-vehicle sales to decline by more than half a billion dollars over the next five years.

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