The Canadian Marine Retailers Association (CMRA) and National Marine Manufacturers Association (NMMA) Canada have announced support for the Federal Government’s Budget 2025 that commits to remove the luxury tax on boats.
The Luxury Tax on Aircraft and Vessels has been the topic of heated debate amongst boaters in Canada for more than three years. A statement from CMRA called it “a failed tax policy that unfairly punished Canadian manufacturers and workers.”
The tax was implemented in September 2022 and applied to aircraft valued above $100,000 and boats costing more than $250,000.
The CMRA says marine industry leaders were quick to point out the impending losses of middle-class jobs, government tax revenues and sales declines. It says the removal of this tax was the direct result of sustained advocacy from the NMMA, the CMRA and supporters across the country.
The Minister of Finance and National Revenue, Hon. François-Philippe said about the Budget, “This is our moment to build Canada Strong and our plan is clear—we will build our economy, protect our country and empower you to get ahead. When we play to our strengths, we can create more for ourselves than can ever be taken away.”
Budget 2025’s debut in parliament includes $141 billion in spending and about $51 billion in savings and cuts. It will go to vote later this month. If the Budget passes, and if the amendment stays after debate, then Canadian boaters will no longer have to pay the extra tax.
“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 Retail 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 removal of this tax helps protect 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 re-engage with many Canadian families whose boating dreams have remained on hold as they refused to pay this frivolous tax,” added Rick Layzell, President of CMRA. “We know it will take some time to bring back the jobs already lost but we are committed to re-engaging both consumers and our workers.”
By eliminating this tax, the government has recognized that recreational boating is an engine of economic activity and a source of connection for communities from coast to coast to coast.