Marine industry leaders have applauded a commitment to remove Canada’s luxury tax on boats.
In the latest federal budget, Canada’s finance minister, Francois-Philippe Champagne, set out a plan to grow Canada’s economy which includes a commitment to remove the luxury tax on boats.
Marine industry leaders have pointed out that the tax policy failed and unfairly punished Canadian manufacturers and workers.
The luxury tax was first implemented in September 2022, and at the time, Canada’s marine industry pointed out the fact that it would lead to the loss of middle-class jobs, government tax revenues and sales declines.
This is a major victory for Canadian manufacturing and marine businesses.
Marie-France MacKinnon
Since 2022, the NMMA Canada and the Canadian Marine Retailers Association (CMRA), among others have carried out sustained advocacy to get the tax reversed and have welcomed the budget announcement.
“This is a major victory for Canadian manufacturing and marine businesses,” said Marie-France MacKinnon, executive director of NMMA Canada.
“We’re grateful to our members, our partners at the Canadian Marine Retailers Association, and MPs from all parties who listened to the evidence and took action to protect Canadian jobs, local businesses, and consumers who want to enjoy time on the water with their families.”
The NMMA says the action protects boat manufacturing jobs across Canada, strengthens domestic production, and allows Canadian dealers to rebuild their businesses and restore sales to pre-tax levels.
Recovering lost ground
And the NMMA adds that by eliminating this tax, the Canadian government has recognised that recreational boating is more than a pastime, instead it is an engine of economic activity and a source of connection for communities from coast to coast to coast.
The CMRA pointed out that the removal of the tax ensures the protection of Canadian manufacturing capacity, supports domestic boatbuilders, and allows dealers and retailers to recover lost ground after years of suppressed sales.
“The retail sector across the country is ready to get back to work, to bring sales back to Canada and to reengage with many Canadian families whose boating dreams have remained on hold as they refused to pay this frivolous tax,” said Rick Layzell, president of CMRA.
“We know it will take some time to bring back the jobs already lost but we are committed to reengaging both consumers and our workers.”
