Four high-ranking Conservative MPs criticized a new Liberal tax that will lead to billions of dollars in fewer sales of vehicles over the next five years..“As the Canadian economy emerges from the pandemic and businesses struggle to recover from the downturn, only the Liberals would think imposing new taxes on businesses that create and maintain good manufacturing jobs is the right path forward," the MPs said..The letter was penned by Shadow Minister for Finance Dan Albas, Deputy Shadow Minister for Finance Adam Chambers, Shadow Minister for Manufacturing and Export Promotion Tony Baldinelli, and Shadow Minister for Innovation, Science and Industry Gérard Deltell..The MPs were referring to a Parliamentary Budget Officer report that looked at the cost of a sales tax applied at the point of purchase of automobiles and aircraft valued over $100,000 and vessels valued over $250,000..The tax will only apply to new vehicles purchased for personal use, and the rate will be the lesser of 10% of the full value of the vehicle, or 20% of the value above the threshold. The tax will come into effect on September 1..The report found that over the next five years, the tax will lead to $2.17 billion in lost sales for vessels, $566 million lost for automobiles, and $144 million lost for aircraft..The Conservatives said the $2.8 billion in lost sales over the next five years — which is a 15% reduction — will "devastate Canada’s car manufacturing sector, boating sector, and aerospace sector.".“This new tax will result in lost jobs, foregone economic opportunity, and a reduction in capital investment at a time when we can least afford it," the Conservatives said..They added that department officials revealed they weren’t asked to conduct an impact assessment on the tax, implying that "the Liberals didn’t even want to know what impact this would have on Canadians.".“Enough is enough. As Canadians are dealing with record-high inflation and a cost-of-living crisis, the last thing they need is another tax that will drive manufacturing jobs, opportunities, and investments away," they said..“Conservatives will always defend Canadian jobs and fight for lower taxes. Rather than imposing job-killing taxes that make life even more expensive, Conservatives will fight to lower the tax burden and provide common-sense solutions to the cost-of-living crisis.”
