OTTAWA — The federal Liberals are introducing a new tax on luxury cars and expensive boats in the budget.
Starting next year, Ottawa wants to charge a luxury tax on new cars and personal aircraft priced over $100,000, and boats, for personal use, priced over $250,000.
The proposed new tax is in addition to the GST/HST that is already charged on the pricey purchases.
Smokers are also going to pay more under the budget. The budget increases the tobacco excise duty rate by $4 per carton of 200 cigarettes, along with corresponding increases on other tobacco products.
The Liberals also want to put more money in the pockets of older Canadians with an increased Old Age Security payment for those 75 and older.
In addition to a proposed one-time payment of $500 in August to OAS pensioners who will be 75 or older as of June 2022, Ottawa says it wants to increase OAS payments for those over 75 by 10 per cent on an ongoing basis.
This report by The Canadian Press was first published April 19, 2021.
The Canadian Press