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Canada Luxury Tax Advances, to Dismay of Auto, Aviation Groups

March 14, 2022, 9:32 PM

Transportation industry groups chided the Canadian government on Monday for ignoring their demands for changes in a proposed luxury tax on cars, planes and boats set to come into effect this year.

The Department of Finance’s decision not to include an exemption for zero-emission vehicles in draft legislation conflicts with the government’s push to mandate zero-emission car sales over the next decade, David Adams, president of the Global Automakers of Canada industry group, said Monday.

The proposal also risks becoming a “tax on tax” by compounding existing provincial levies in Quebec and British Columbia, according to a statement from ...