New car dealers are facing numerous challenges today 91裸聊视频� a shortfall of new car products in a post-COVID shutdown economic world, shortage of microchips needed for those new cars, shortfall of car parts, and pressure on used vehicles market availability.
So when provincial and federal taxation imposes further burdens on the industry, it becomes that much more frustrating, says Blair Qualey, president of the New Car Dealers Association of BC (NCDA).
91裸聊视频淲e are making our case but nobody is listening, paying attention,91裸聊视频� said Qualey.
The NCDA contends the B.C. luxury tax on vehicles still kicks in at $55,000, which Qualey says has not been adjusted for inflation and the overall cost of new vehicles with all the new technology 91裸聊视频榖ells and whistles.91裸聊视频�
With B.C. and Quebec the only provinces to impose such a tax, it leaves open the options for consumers to shop elsewhere for a new vehicle to save money, which not only reduces sales revenue for car dealers but a loss in tax revenue.
91裸聊视频淭hat tax has been in place since the 91裸聊视频�90s and never been adjusted. That tax threshold needs to be looked at91裸聊视频he average new vehicle now starts at about $55,000 with all the modern bells and whistles,91裸聊视频� he said.
And now the federal government plans to live up to an election campaign promise to impose a 10 per cent federal luxury car tax in September on vehicles over $100,000 in price.
Qualey said the NCDA has made presentations on the potential negative impact of the tax on consumers and his industry 91裸聊视频� placing B.C. car dealerships and the jobs it creates at risk.
91裸聊视频淚t will provide an even greater incentive for consumers to take their business elsewhere, greatly impacting the more than 400 new car dealerships in 55 communities across this province, generating $15.6 billion in economic activity, and 27,000 family-supporting jobs,91裸聊视频� Qualey said.
91裸聊视频淲e have made our case to Ottawa. We know it was an election campaign promise but now we are waiting to hear back from the federal folks on what happens come September.91裸聊视频�
The imposition of luxury taxes on new vehicles, he says, is placing an unfair burden on new car dealers, citing for example how boats and recreation vehicles don91裸聊视频檛 face the same taxation.
91裸聊视频淲e just want a level playing field,91裸聊视频� he said.
The NCDA cites a May 26 report by the Parliamentary Budget Officer, suggesting the new tax on luxury vehicles would add $572 million to government coffers through the 2026-27 budget year but reduce sales by $566 million, or 19 per cent, over the same period.
He said the vehicle retail industry is still struggling to recover from the manufacturing slowdowns imposed by COVID-19.
91裸聊视频淓veryone on the vehicle manufacturing side put the breaks on production not knowing how things would unfold and it takes a while for that to kick back in,91裸聊视频� he said.
91裸聊视频淐ar manufacturers are trying to catch up to market demand but there are issues with availability of microchips you need for these new vehicles. And manufacturers have to pillage their own parts supply to get more product off the factory floors, and that in turn creates a parts shortage.
91裸聊视频淎nd with interest rates going up, it continues to pile on as that can present car loan challenges for consumers. And we don91裸聊视频檛 seem to get any relief from the government on some of these challenges.91裸聊视频�
READ MORE: B.C. budget91裸聊视频檚 tax increases affect used vehicle sales, tobacco
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