Select Luxury Items Tax – 2,000 jobs at risk in the Canadian aerospace sector

Select Luxury Items Tax - 2,000 jobs at risk in the Canadian aerospace sector

Press Release
For immediate release

Select Luxury Items Tax – 2,000 jobs at risk in the Canadian aerospace sector

Montreal, December 8, 2022 – The Government of Canada’s Select Luxury Items Tax would threaten at least 2,000 direct jobs in the Canadian aerospace sector, according to Jacques Roy, professor in the Department of Logistics and Operations Management at HEC Montréal. The IAMAW is calling on the federal government to review the application of its tax.

“When we spoke to the Finance Committee, we warned the government that this tax would be more likely to result in job losses and loss of income for aerospace workers than in increased tax revenues,” said IAMAW Canadian General Vice-President, David Chartrand. The release of this study proves us right.”

According to Professor Roy’s study, the negative impacts of the tax on aerospace jobs would result in $149 million in lost wages for the aerospace sector. These lost wages would translate into $29.9 million per year in lost taxes for the Canadian government, while the expected revenue from the tax is $9 million per year.

“We agree that we need to get the wealthiest to do their fair share, but this tax does not do that. In its current form, this tax is hurting aerospace workers and our economy, the government needs to review how its tax works,” concludes David Chartrand.


The Government of Canada has introduced a Select Luxury Items Tax (luxury tax) on the sale and importation of certain vehicles and aircraft valued above $100,000 and certain vessels valued above $250,000 that came into effect on September 1, 2022. Under the Act, Canadian aircraft manufacturers are required to register with the Canada Revenue Agency (CRA) as registered vendors and collect the luxury tax.

To download Professor Roy’s study

The IAMAW is the world’s largest aerospace union with over 184,000 members in 1,000 collective agreements. Active in the Quebec aerospace industry since 1940, the IAMAW today represents 65% of unionized workers in the sector. Among others, we find members of the Machinists at Bombardier, Airbus, Stelia, Rolls-Royce, Héroux-Devtek, Safran Landing, L3-MAS, AJ-Walter, Air Canada, Air Transat.


For more information:
Frank Saptel
IAM Canada Communications