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Luxury Automakers Warn Canada’s New 10% Tax Could Stunt Growth

March 13, 2020, 5:31 PM

Major car manufacturers in Canada are asking the government to abandon a new luxury tax on vehicles, warning that it would hurt sales and spark a trade spat with Europe.

Industry groups are hoping to convince Prime Minister Justin Trudeau’s government to drop plans for a 10% tax on cars, boats, and personal aircraft that cost more than C$100,000 ($72,378). The proposal could end up in the government’s spring budget, fulfilling a campaign promise made last year.

The tax would raise C$585 million in the 2020-21 fiscal year, the Parliamentary Budget Office, an independent watchdog, said in a preliminary analysis ...

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