Canada’s 2025 federal budget includes a commitment to remove the luxury tax on private planes and boats, which was first introduced in September 2022.
The policy – introduced by the Trudeau government – had drawn criticism from Canada’s marine industry for contributing to job losses, lower tax revenues and reduced sales.
According to trade association NMMA Canada, which advocated for the change alongside the Canadian Marine Retailers Association (CMRA), the removal of the tax will support boat manufacturing jobs, strengthen domestic production and help dealers recover sales to pre-tax levels. It is also expected to benefit middle-income workers employed across the marine.