The Canadian Business Aviation Association (CBAA) has opposed Canada’s introduction of a luxury goods tax which came into effect on Sept. 1.
Anthony Norejko, President and CEO, CBAA, said the decision will have negative consequences for Canada’s aviation and aerospace sectors, as the luxury tax includes aircraft and yachts.
“As the global economy teeters on the brink of recession, imposing the tax without understanding its full impact on jobs and the economy is, in our view, reckless,” said Norejko.
He said the imposed tax will affect job creation, business competitiveness, and the ability to achieve Canada’s net-zero goals, adding that Finance Canada should have undertaken a full economic analysis on its impact before the move.
The CBAA suggested the government pause the luxury tax on aircraft before a full economic impact assessment, raise the sales price threshold, and exempt commercial charter flights from the tax while establishing an upper limit.
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