Government of Canada: Luxury Tax Consultation

[Teriyaki]

I think a glass half full way to look at it is, it's either a consumption tax or income tax. One you can control, one you can't.

So given the choice between the two, would people making those high income figures that can actually afford these types of luxury products prefer to be taxed at income or upon consumption. I'm not even close to that bracket but I know what I'd choose.

And yes, a 100k car is a luxury item anyway you slice it.

[mikemhg]

The average new vehicle price list by province is as follows (with percentage difference from average in brackets):

Alberta: $35,729 (10.9%)
Saskatchewan: $34,458 (7.0%)
Manitoba: $34,438 (6.9%)
BC: $33,900 (5.2%)
Ontario: $32,970 (2.4%)
All Canada: $32,210
NS: $29,967 (-7.0%)
Quebec: $28,842 (-10.5%)
NB: $28,679 (-11.0%)
NFLD: $26,925 (-16.4%)
PEI: $26,079 -19.0%


The average new car price list by province is as follows (with percentage difference from average in brackets):

Ontario: $26,737 (6.5%)
BC: $26,105 (4.0%)
Alberta: $25,811 (2.8%)
All Canada: $25,108
Saskatchewan: $24,871 (-0.9%)
Manitoba: $24,628 (-1.9%)
Quebec: $23,263 (-7.3%)
NS: $23,021 (-8.3%)
NB: $22,468 (-10.5%)
NFLD: $21,630 (-13.9%)
PEI: $21,428 (-14.7%)


The average new light truck (including vans, pickups, SUVs) price list by province is as follows (with percentage difference from average in brackets):

Manitoba: $42,009 (5.4%)
BC: $41,559 (4.3%)
Alberta: $41,383 (3.8%)
Saskatchewan: $39,870 (0.1%)
All Canada: $39,858
Ontario: $39,395 (-1.2%)
NS: $39,138 (-1.8%)
Quebec: $38,983 (-2.2%)
NB: $35,881 (-10.0%)
NFLD: $33,241 (-16.6%)
PEI: $33,080 (-17.0%)

So yes, a $100K vehicle is a luxury vehicle. Although I do believe this ultimately won't fix any problems we're seeing here, there are far more pressing items I think the government should be focusing on if trying to correct the wealth gap.

[Traum]

I can't comment on the rest of Canada, but looking at the BC number, it seems rather low to me.

Assuming that the number you quoted is before tax -- it'd be even more surprising if it already include tax -- $26k really doesn't buy very much car when it is brand new. For example, the starting prices of new cars are:

2022 Civic EX sedan - MSRP $26765
2022 Camry - MSRP $27510
2022 Corolla - MSRP $19450

Metro Vancouver alone accounts for ~50% of BC's population, and we all know there are a lot of cars here that sell for way more than $26k when they were new.

Originally Posted by mikemhg

The average new car price list by province is as follows (with percentage difference from average in brackets):

Ontario: $26,737 (6.5%)
BC: $26,105 (4.0%)
Alberta: $25,811 (2.8%)
All Canada: $25,108
Saskatchewan: $24,871 (-0.9%)
Manitoba: $24,628 (-1.9%)
Quebec: $23,263 (-7.3%)
NS: $23,021 (-8.3%)
NB: $22,468 (-10.5%)
NFLD: $21,630 (-13.9%)
PEI: $21,428 (-14.7%)

[TouringTeg]

^ I am not sure where these numbers came from but they seem quite low to me. I didn't think there was a lot of choices for a new vehicle in BC for $26k or less.

[freakshow]

These are two separate issues..
1. a $100k car IS a luxury item.
2. Is a tax on luxury vehicles right either morally or practically? If so, is $100k the appropriate limit to set?

[westopher]

We will just see more cars with Alberta plates parked in point grey mansion driveways than we already do.
It’s like they make tax rules based on ease of actual rich people having access to loopholes. Who can be surprised though? It’s not like politicians want to pay more taxes. That’s for the tax bracket below them to worry about.

[Harvey Specter]

Thank god I'm getting my car before this tax comes in and the CRA is cracking down on the Alberta scheme.