Luxury goods tax on super-rich could hit green cars, experts say


Tax experts warn that a new tax on yachts, luxury cars and private planes designed to hit the super-rich could also cover some electric and hybrid cars.

A luxury goods tax, which takes effect in three weeks, will cover cars and SUVs, as well as private planes and helicopters worth more than $100,000.

The federal government will also introduce a tax on September 1 on superyachts and motorboats worth more than $250,000.

Adrienne Vaupshas, ​​spokeswoman for Finance Minister Chrystia Freeland, said the measures, originally proposed in the 2021 budget, are popular with the public and are not designed to hit the middle class.

The tax is either 10% of the taxable amount of the vehicle or 20% of the amount exceeding the price threshold. The smallest.

But senior tax lawyer Helena Gagné says it could hit some electric and hybrid vehicles, like some Teslas, as well as planes bought by enthusiasts as a hobby.

This report from The Canadian Press was first published on August 11, 2022.