Canada Removes Luxury Tax on Boats

Canada’s Budget 2025 includes a commitment to remove the luxury tax on boats, a failed tax policy that unfairly punished Canadian manufacturers and workers. When the luxury tax was first implemented in September 2022, Canada’s marine industry leaders were quick to point out the impending losses of middle-class jobs, government tax revenues and sales declines. The removal of this failed tax was the direct result of sustained advocacy from the National Marine Manufacturers’ Association Canada, the Canadian Marine Retailers Association (CMRA) and grassroots supporters across the country.

This decisive action protects boat manufacturing jobs across Canada, strengthens domestic production, and allows Canadian dealers to rebuild their businesses and restore sales to pre-tax levels. It also provides relief for the thousands of middle-class Canadians whose livelihoods depend on a strong recreational boating industry.

By eliminating this tax, the Canadian government has recognized that recreational boating is more than a pastime. It is an engine of economic activity and a source of connection for communities from coast to coast.

The removal of this tax ensures the protection of Canadian manufacturing capacity, supports domestic boatbuilders and allows dealers and retailers to recover lost ground after years of suppressed sales.

NMMA Canada and CMRA look forward to continuing advocacy work to advance policies that grow Canada’s marine economy, expand access to the water for Canadians and help drive increased growth for the recreational boating industry.