Canada to remove luxury tax on yachts and private jets

The Government of Canada has announced plans to rescind the "luxury tax" placed on high-value vessels and aircraft, as part of its 2025 Federal Budget. 

First introduced in 2022, the tax applied to the sale and importation of private planes valued above $100,000 CAD and boats above $250,000 CAD. This levy was equal to the lesser of 10 per cent of the item's total value, or 20 per cent of the value above the expressed threshold. 

A tax on luxury cars valued above $100,000 CAD remains in place.