Last updated: December 05, 2023
Summary of the issue:
- COPA asserts that the Luxury Tax will have negative impact on an already struggling aviation sector. Canadian pilots pay compulsory levies on fuel, insurance, maintenance, registration, training, and more. It is a costly industry and another tax to general aviation will further impede the recovery of the aviation sector post-COVID-19. Ultimately, this will taxation will create ripple effects towards the pilot gap in Canada.
- In 2019, the Liberal Party of Canada promised a Luxury Tax in their election campaign platform. The proposal was included in Prime Minister of Canada, Justin Trudeau’s Mandate Letter issued to the new Finance Minister on December 13, 2019.
- By February 2020, COPA responds to the issue by sending a letter addressed to Finance Minister, Bill Morneau, to express the association’s deep concerns regarding the proposed Luxury Tax.
- In the Federal government’s 2021 budget, the Liberal government proposed a new Luxury Tax on new cars and personal aircraft priced over $100,000, and for personal use boats priced over $250,000. The tax was to come into effect September 1, 2022.
- By May 2021, COPA launched a petition opposing the proposed luxury tax, and received 1,714 signatures of support.
- On February 17, 2022 COPA shared the latest update on the luxury tax with its members.
- In general, the following aircraft are considered exempt from the Luxury Tax:
- Aircraft manufactured before 2018
- Aircraft that is designed and equipped for military activities
- Aircraft that is equipped solely for carrying goods (cargo)
- Aircraft whose purchased contract was signed and completed prior to January 1, 2022
- Certain aircraft for export from Canada
Support our efforts to protect your Freedom to Fly
The Freedom to Fly Fund was created to guarantee that COPA would have the resources to take on emergency actions, legal or otherwise, in the defence of the Canadian Freedom to Fly.
This fund is made available through the generous contributions of COPA members and supporters, to ensure that we continue to enjoy our freedoms, such as the right to have an airstrip on your property.
Uses of the fund include legal actions such as the federal jurisdiction issue that was successfully brought before the Supreme Court of Canada in 2009-2010.
To apply for support for an issue, click here. Please note, the Freedom to Fly Fund exclusively supports pilots who have been a COPA member for at least 12-months.