Carney is cutting the luxury tax. What else is getting axed in Budget 2025?

The Liberal government’s new federal budget is proposing cuts and reductions to prominent policies once championed by the party, including the luxury tax on boats and private planes, a tax on underused homes and potentially the greenhouse gas emission targets.

Other measures include a “super-reduction” to Canada’s marginal effective tax rate and further automating traveller screening at the nation’s airports, which the government says will help deliver “efficiencies” along with the rest of the public sector.

Here’s a rundown of what the budget proposes to cut.

Ending luxury, unused house tax

The government is proposing to eliminate the “inefficient” Underused Housing Tax and the luxury tax on private aircraft and vessels, which the budget says “will result in administrative savings”