AIAC denounces proposed tax

Mike Mueller, president of the Aerospace Industries Association of Canada (AIAC), recently appeared before the House of Commons Finance Committee to explain the industry’s concerns over the government’s Select Luxury Items Tax Act.

“Canada’s aerospace industry was hit hard by the global pandemic and is still struggling to recover. This strategic sector is making a significant contribution to Canada’s overall economic recovery and can do much more. Our members are at a loss to understand why the federal government feels this legislation is necessary at such a challenging time for the industry. The only thing this legislation will do is impose a new tax and negatively impact aerospace jobs across the country,” said Mueller.

Mueller focused his remarks on the negative effect the legislation will have on Canadian aerospace manufacturing and the possible job loss that will be experienced should the act be implemented as currently drafted.

“This proposed tax targets aerospace manufacturers and will kill revenue and jobs. Aircraft production is a strength for Canada, providing a solid foundation for recovery and jobs, and should not be punished with a misdirected tax on manufacturing that will hurt manufacturers and workers,” said Mueller.

The tax originally was proposed in the 2021 budget and is intended to apply to certain aircraft, vehicles, and vessels based on their price and use.