We reported last month that COPA’s president and CEO Bernard Gervais had written to Finance Minister Bill Morneau to express COPA’s objection to a proposed 10 percent tax on aircraft purchased for personal use with a value of more than $100,000.

This proposal was announced during the 2019 federal election campaign by the Liberal Party of Canada. After the Liberals won the election and formed government, the tax proposal was included in the prime minister’s mandate letter to the re-appointed finance minister, Bill Morneau. The specific instruction is: “Introduce a new 10 percent tax on luxury boats, cars and personal aircraft over $100,000.”

COPA has now received a reply to its letter from the minister.

“We see from the tone of the minister’s letter that he is open to further consideration regarding the applicability of the proposed tax, which is probably not such a low-hanging fruit after all,” Gervais told eFlight. “We remain optimistic that the government will withdraw this proposal.”

Gervais added, “We wish to sincerely thank the hundreds of members who responded to our invitation to write to their MP and the minister, this has certainly not gone unnoticed.”

Both the letter to the minister from COPA, and the minister’s reply, are appended below.

10% Tax COPA Letter
Hon. Morneau reply