The Recreation Vehicle Dealers Association (RVDA) of Canada issued a statement Thursday (March 23) supporting the Liberal government’s position on maintaining current de minimis rates in the recently released Federal Budget.
According to the statement, “Yesterday, the Honorable Bill Morneau presented the 2017 budget in the House of Commons. This budget maintained the government’s current position on de minimis rates for Canada. The current de minimis rule exempts imported parcels with a value of under $20 from sales taxes and customs duties. The Government has stood by its position in the wake of excessive pressure from foreign online vendors to increase the level as high as $200.
“RVDA of Canada congratulates the Liberal government on protecting Canadian businesses in the recent Federal Budget.”
According to RVDA of Canada, if the de minimis threshold were to be raised to $200, that would mean that any item costing under $200 could be shipped into Canada free of federal and provincial sales taxes and also duty-free. This would ultimately require Canadian merchants to sell their products for a higher price than those being imported from other countries, as they would still be required to collect sales tax on their saleable items.
“We are pleased to see the government supporting Canadian businesses in Budget 2017,” stated Eleonore Hamm, president of RVDA of Canada. “This will help protect the chain of Canadian tourism services, products and general retailers, giving back to our local communities and the broader economy.”
RVing in Canada has a considerable economic impact as the manufacturing, purchasing, servicing and use of recreation vehicles contributes billions – both directly and indirectly – to the Canadian economy each year. In fact, in 2011, the total economic activity associated with the Canadian recreation vehicle industry reached $14.5 billion.
Direct spending associated with recreation vehicles reached $11.5 billion. These expenditures generated $8 billion in net economic activity (GDP) and 98,800 jobs. In total, the retail sales and services associated with Canada’s more‐than‐400 recreation vehicle dealers generated $1.5 billion in net economic activity (GDP) throughout Canada and supported nearly 19,300 jobs.