Automotive

New proposed federal 10% tax on luxury cars (Over $100,000)

  • Last Updated:
  • Nov 12th, 2019 7:08 pm
237 replies
Deal Addict
Jan 8, 2009
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Ontario
Is this a veiled import tax? I don't think any Canadian built cars are affected.

What's next - a special tax on TVs over 60"
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Sep 3, 2006
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Winnipeg
Martin (deal addict) wrote: Is this a veiled import tax? I don't think any Canadian built cars are affected.

What's next - a special tax on TVs over 60"
This is tax on cost, not size, so your TV example doesn't make sense.

Also, there are duties on foreign made cars imported into Canada, so it's not an import tax (duties).
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May 10, 2005
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Ottawa
CuriousJack wrote: No tax on used car next.
10% tax on fancy cars...sure why not? A new revenue stream.
No tax on used cars?/? LOL That'll be the day.
The Government cannot give to anybody anything that the Government does not first take from somebody else.
Deal Fanatic
May 1, 2012
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Markham
If you can afford a 100k super/sports/luxury car, you can afford the extra 10k
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Aug 17, 2009
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There are ways around it. You could purchase a luxury +$100K vehicle from US, in particular from the state(s) with very low sales taxes. You then import it and pay tariffs. I use clearit.ca for estimates on importing high-value cars. It is showing me approx. $26,750 in tariffs/taxes to import a half-million car.

I think the only ones mainly affected by this would be the dealerships themselves. This is as silly as suggesting a 1% tax on people with more than $20 million in their bank accounts. Someone should tell our politicians that the wealthy Canadians don't keep their money in Canadian banks. LOL
Corvus oculum corvi non eruit.
Deal Addict
Jan 8, 2009
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Ontario
jcon wrote: This is tax on cost, not size, so your TV example doesn't make sense.

Also, there are duties on foreign made cars imported into Canada, so it's not an import tax (duties).
Didn't say they were identically formulated taxes - just a worrying precedent to tax something because its a luxury. Much more sensible to tax a vehicle based on greenhouse gases produced.

If you want to tax the rich raise income tax and close down tax avoidance loopholes.
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Sep 3, 2006
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Winnipeg
Martin (deal addict) wrote: Didn't say they were identically formulated taxes - just a worrying precedent to tax something because its a luxury. Much more sensible to tax a vehicle based on greenhouse gases produced.

If you want to tax the rich raise income tax and close down tax avoidance loopholes.
These are consumption taxes that are far more progressive.
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Deal Addict
Mar 21, 2013
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Edmonton
Pete_Coach wrote: 10% tax on fancy cars...sure why not? A new revenue stream.
No tax on used cars?/? LOL That'll be the day.
No tax on used cars in AB if you buy from a private owner.
Deal Addict
Mar 21, 2013
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Edmonton
I could give a **** about the feelings of people spending $100k on a toy. There is no car over $100k that is necessary in any way for personal use, only some heavy duty trucks for business use.
Sr. Member
Feb 17, 2015
902 posts
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Canada
the thing is if a car changed ownership 3 times...govt already collected $4K on a new
$30K car...then $2K when it will be sold at $15K used and so on...
Pete_Coach wrote: 10% tax on fancy cars...sure why not? A new revenue stream.
No tax on used cars?/? LOL That'll be the day.
Deal Fanatic
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Mar 17, 2006
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Burlington
engineered wrote: This is great. What budget baller is going to be upset his McLaren is 10% more expensive? I doubt dealers will notice a hit, but I expect to see more cars priced at $99,999.
Read in another article, sales of luxury car in BC dropped quite a lot after they imposed the 10-15% luxury car tax
Member
Nov 7, 2017
251 posts
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Toronto, ON
I mean I hope this decreases the amount of foreign students driving horribly in 100k+ cars..
Member
Feb 2, 2018
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Montreal
They should look into Porsches, BMWs. etc. with business plates. Business vehicles should be restricted to certain types / cost.
[OP]
Deal Addict
Jan 1, 2013
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Durham
Why should someone buying a $100k car be taxed another $10k on top of HST? People worked their arses off to afford these things, not to just pay it back to the government. What if someone drove crap boxes all their lives and finally saved up and can actually afford one? They now have to fork over $10k?

Can't stand the "If they can afford it" mentality. To me it seems more like jealousy. Don't blame your shortcomings on successful people. Some with money are frugal as well.
Last edited by Kkhan15 on Oct 28th, 2019 3:49 pm, edited 1 time in total.
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Sep 3, 2006
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CloudReader wrote: They should look into Porsches, BMWs. etc. with business plates. Business vehicles should be restricted to certain types / cost.
Why? Who cares how a business chooses to spend it's money?
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Dec 21, 2013
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GTA
Nev0513 wrote: I mean I hope this decreases the amount of foreign students driving horribly in 100k+ cars..
"B.C.’s wealthy are already subject to a 15-per-cent provincial sales tax on vehicles in the $125,000 to $149,999 range; and a 20-per-cent tax on those over $150,000. Both of those were increased in 2018 by the provincial NDP government.
The proposed new luxury tax would be on top of those tariffs, meaning for West Coast buyers, a $232,000 Lamborghini Urus would accrue almost $70,000 in taxes."

While I'm all for taxing the ultra rich, I feel like $100K is a bit too low. All cars over $150K would be a better option IMO, new and used.
Corvette/GM dealers sweating buckets right now.

P.s. If anyone is considering running for election, if you wipe out tipping you have my vote regardless of what your other policies are. Grinning Face With Smiling Eyes

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