Recreational Marine Industry Applauds Removal of Canada’s Luxury Tax on Boats in Budget 2025

Yesterday, it was announced that 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 NMMA Canada, the Canadian Marine Retailers Association (CMRA), and our 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 sector.

By eliminating this tax, the 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 to coast.

"This is a major victory for Canadian manufacturing and marine businesses," said Marie-France MacKinnon, Executive Director of NMMA Canada. "We're grateful to our members, our partners at the Canadian Marine Retail Association, and MPs from all parties who listened to the evidence and took action to protect Canadian jobs, local businesses, and consumers who want to enjoy time on the water with their families."

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.

"The retail sector across the country is ready to get back to work, to bring sales back to Canada and to reengage with many Canadian families whose boating dreams have remained on hold as they refused to pay this frivolous tax," added Rick Layzell, President of CMRA. "We know it will take some time to bring back the jobs already lost but we are committed to reengaging both consumers and our workers."

NMMA Canada and CMRA look forward to continuing its 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.