A tax on luxury cars , the C8 included ?

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larryd

larryd

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A quote from somebody on Yahoo news from the feds.
`The extension of the Covid-19 income supports was first reported by the Toronto Star, and the tax on digital services by Reuters, which also said the government would impose a levy on luxury items like cars worth more than C$100,000, private planes and yachts.`

Would the fed consider a corvette C8 a luxury car ? I hope not.
 
The C8 and ANY vehicles purchased for over $100,000.00 will attract the 10% Federal government tax, starting in 2022. The details have yet to be released so for example it's unknown if this applies only to new vehicles or used as well. This was one of the Liberal election platform promises, about to be made law after several years. There will be a LOT of unhappy vehicle, boat and airplane buyers out there next year. And Provinces that already have some form of this "luxury tax" like BC will be doubly incensed. The budget comes down today and will contain that provision. Here's the quote from the pre-budget article along with a reference to the Reuters article itself:

The budget will also include a luxury tax effective from 2022 on new cars and private aircraft valued at more than C$100,000 ($79,970), and boats worth over C$250,000, government sources familiar with the document told Reuters.

www.cp24.com

Federal Budget 2021: Liberals extend COVID-19 aid with election top of mind

The first federal budget in more than two years extends Ottawa's COVID-19 “lifeline” for workers and struggling businesses another few months as it aims to pull Canada through the pandemic once and for all.
www.cp24.com www.cp24.com
 
Wonder if they will exempt luxury “planet saving “ Electric vehicles? Seems that most of the newer electric vehicle offerings are top end and well over $100K. (Mercedes, Audi, Tesla etc)
Why is a $100K threshold , both on income and cars , luxury goods such a fixation for our with our tax and spend governments ? You would think that someone spending 100K on a new vehicle, having already paid tax to earn that $100K, plus paying $13K HST (ont.) now needs to pay an additional 10%.
I now sound like my Dad.😭
Devil will be in the details at 4:00
 
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The feds were hinting at that luxury tax last year. I wouldn't doubt they do it this budget. It will get cheers from the people who can't afford nice things. We already pay 13%. Guess that isn't enough.
 
TCinthe6 said:
Unreal, but I'm not surprised at anything this Government publishes regarding taxation and spending.
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ANY government!!!
It's all a game to politicians! Libs say black and Cons say white in 2019. In 2020 Libs say White and Cons say black.
I get so tired of all they games they play. Give me a good old dictatorship! LOL
 
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Murray20c8 said:
ANY government!!!
It's all a game to politicians! Libs say black and Cons say white in 2019. In 2020 Libs say White and Cons say black.
I get so tired of all they games they play. Give me a good old dictatorship! LOL
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I hear you!

Pick your poison, and whatever party you believe will do the least damage.

For me, whoever can lower my taxes, have less scandals, keep the virtue signaling down, and not infringe on my rights is the party I will support.

But if I had genie in a bottle, I would wish myself onto a self-sustaining island and build a world class GP track to keep myself busy 12 months a year.
 
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This is only the beginning folks. We have federal debt for the first time in history well north of $1,000,000,000,000....and a Liberal govt that is going to increase social spending, not cut it...The middle class and corporations should be prepared for steady and significant tax increases...there is no other option except to print more money and devalue the Cdn dollar to the point of monoply money (this has already begun)
 
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GogglesPizano said:
Murray, I'll can tell you, we don't have the luxury of that train of thought out west. By the time Ontario muses about perhaps voting other than liberal... AB's vote doesn't mean anything
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We let you have Connor McDavid! What more do you want from us you gas hogging Albertan ;)
 
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Would this apply to vehicles that are outright purchased or leased as well? Could you not get around this by leasing the vehicle first, then buying it out at end of term ? And do they base this on MSRP or actual purchase price? Let the loophole search begin...
 
jimmyb said:
Would this apply to vehicles that are outright purchased or leased as well? Could you not get around this by leasing the vehicle first, then buying it out at end of term ? And do they base this on MSRP or actual purchase price? Let the loophole search begin...
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Yes. You pay tax on the lease or if you happen to finance, the tax is included in the financed amount
There are a few benefits to
Living in Alberta. Low tax being one of them
 
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