A New Era for Boaters as the Luxury Tax Canada Is Officially Removed

Canada’s recreational boating community just received the news we’ve all been waiting for: the complete removal of the Luxury Tax on boats in the Federal Budget announced on November 4, 2025. We’re celebrating alongside industry partners, customers, and boating families from coast to coast. This decision marks the end of a challenging period for everyone who loves life on the water — and the start of a new, thriving chapter for boating in Canada.

Key Takeaways

  • The federal government has fully removed the Luxury Tax on recreational boats.
  • The repeal protects middle-class marine workers, Canadian manufacturers, and local dealerships like Jones Boys Boats.
  • Canadian families interested in boating will now see fairer pricing, better access, and renewed inventory.
  • This industry victory was made possible by sustained advocacy from NMMA Canada, CMRA, and grassroots supporters.
  • Now is the perfect time to explore new boats, upgrade, or return to your boating dreams with confidence.

A Major Victory for Canada’s Boating Industry

When the Luxury Tax first came into effect in September 2022, the recreational marine sector raised immediate concerns: job losses, declining sales, and a significant hit to the livelihoods of thousands of Canadians working in the boating economy. Despite being labelled as a “luxury” charge, the tax disproportionately affected middle-class jobs, local businesses, and the very fabric of Canada’s boating communities.

Industry leaders — including the National Marine Manufacturers Association (NMMA) Canada, the Canadian Marine Retailers Association (CMRA), and supporters nationwide — worked tirelessly to bring these impacts to light.

And on November 4, 2025, the federal government officially recognized what recreational boaters already knew: This tax wasn’t fair, and it wasn’t working.

Why the Removal of the Luxury Tax Matters

For an industry built on craftsmanship, adventure, and family traditions, the luxury tax created a ripple effect far beyond the showroom floor. Here’s why its repeal is so essential — and why we are proud to share this news:

1. Protecting Middle-Class Jobs and Local Businesses

Marine manufacturers and retailers across Canada suffered immediate sales declines after the tax was introduced. Many businesses saw customers delay or cancel purchases, resulting in layoffs and lost revenue.

The repeal puts Canadians back to work, stabilizes production, and invites new growth into an industry that employs thousands in communities like ours.

2. Strengthening Domestic Manufacturing

Canadian boatbuilders are known worldwide for quality and innovation. By returning to fair pricing models and competitive conditions, we support the long-term viability of domestic manufacturing — a win for workers, families, and the economy.

3. Helping Dealerships Rebuild and Reconnect

At Jones Boys Boats, we’ve felt the strain firsthand. Consumers hesitated to buy, inventories shifted, and conversations that should have been about excitement became about affordability barriers.

Now, with the tax gone, we can get back to what we do best: Connecting families with exceptional boats and unforgettable experiences on Kootenay Lake.

4. Expanding Access to Boating for Canadians

Recreational boating isn’t just about luxury — it’s about connection:

  • families bonding on the water
  • quiet coves and sunset cruises
  • fishing traditions passed through generations

The removal of the Luxury Tax ensures these experiences stay accessible and affordable.

5. Renewed Confidence for Boat Buyers

Whether you’re considering your first boat or upgrading to something new, you can now shop with clarity and confidence. No surprise charges. No punitive pricing. Just fair value and transparent options.

Industry Collaboration Made This Possible

This victory didn’t happen overnight. It took years of advocacy, meetings, presentations, coalition building, and persistent effort from leaders across the country.

In Ottawa on the day of the announcement were:

  • Rick Layzell, President of CMRA
  • Marie-France MacKinnon, Executive Director of NMMA Canada
  • Bruce Hayne, Executive Director of Boating BC

Working hand in hand with associations, MPs, and industry partners, they helped amplify the voices of thousands of Canadians. As CMRA President Rick Layzell shared, the retail sector is more than ready to “bring sales back to Canada and reengage with the families whose boating dreams were put on hold.”

We stand behind this message wholeheartedly.

What This Means for You at Jones Boys Boats

More Inventory, More Choice

With pricing landscapes stabilizing, manufacturers and dealers can increase production and restock models that were previously slowed or paused.

Better Opportunities for Upgrades

If you’ve delayed investing in a new boat, this is the time. We expect to see greater selection, improved trade-in options, and stronger demand.

A Better 2026 and Beyond

The removal of the Luxury Tax paves the way for a strong spring and summer season ahead. We’re gearing up for increased availability, more events, and the type of enthusiastic boating community gatherings we’ve all missed.

A More Vibrant Kootenay Lake Boating Community

With affordability restored and industry confidence back, our entire local boating ecosystem — marinas, service teams, tourism operators, and lake enthusiasts — will benefit.

The Boating Community Is Celebrating — And So Are We

From coast to coast, boating isn’t just an activity. It’s a way of life. The federal government’s decision acknowledges this truth and reinforces the value of Canada’s marine communities.

At Jones Boys Boats, we’re incredibly grateful to everyone who worked to get this tax repealed, and we can’t wait to welcome both returning and first-time boaters back into the fold. As the industry prepares for an exciting Vancouver International Boat Show — with no luxury tax — the future feels brighter than ever.

Ready to Explore the Next Wave of Boating?

With the Luxury Tax in Canada officially gone, there’s never been a better moment to dive back into your boating dreams. Whether you’re ready to upgrade, just beginning to explore the world of boating, or looking for expert advice, Jones Boys Boats is here to guide you every step of the way.

Visit us, contact our team, or explore our latest inventory — your next great adventure on Kootenay Lake starts now!