Good afternoon, Mr. Chair.
Thank you for the invitation to appear before you today to discuss the implications of Bill C-30 on Canada's $12.1-billion business aviation sector. While this is our the first appearance before the finance committee, the Canadian Business Aviation Association has been representing this sector for a long time. In fact, this is our 60th anniversary. Today we represent over 400 members across the country, including corporate flight departments, flight management companies and entrepreneurs who use aircraft to conduct and grow their businesses.
I would like to share a few facts about business aviation and how it contributes to Canada's social and economic well-being. Despite the myth that business aviation is used exclusively by the 1%, the reality is that our sector is essential to a wide range of individuals in everything from business suits to construction boots. The reality is that business aviation is a significant driver of economic growth and jobs across Canada and can be an anchor in our economic recovery.
Given Canada's vast size, complex geography and small population, aircraft have been a niche tool to deliver personnel, food and supplies, equipment and other essential services to communities of all sizes, many of which have only the most basic airstrip for landing and taking off.
Business aviation employs a wide variety of aircraft from four-seat, propeller-driven aircraft to long-range, Canadian-made Bombardier Global 7500s as well as Boeing 737s. These time machines are used to serve our communities, get workers to remote job sites and ensure that people can travel by air safely, efficiently and with all health protocols firmly in place. Today, with Canada's major carriers having cancelled flights to dozens of Canadian communities, business aviation has become even more important to delivering cargo, personnel and supplies and ensuring that commerce and trade can continue to support local jobs and businesses.
Our sector, which represents over 50,000 Canadian jobs in highly skilled and well-paying professions, gives Canada's entrepreneurs and corporations a much-needed competitive advantage. Moreover, supporting the use of these aircraft also supports Canadian aviation research, development and manufacturing giants such as Bombardier, CAE, Pratt & Whitney Canada, De Havilland and Diamond Aircraft, to name just a few.
While there are many aspects of Bill C-30 we'd like address, the chief among these is the luxury tax on private aircraft. The first critical point you need to know is that very few aircraft fall into the personal luxury category. They are nothing like yachts or high-end cars. They are not a lifestyle choice, but rather a safe, reliable and efficient mode of transportation. The imposition of such a tax on aircraft used for business purposes will have a number of downstream negative implications for safety, sustainability and for the people, businesses and communities that rely on our aircraft.
With the cost of a new tax to consider, operators will be incented to hold on to aircraft that are older and less sustainable. This would be unfortunate, as business aircraft are the most technologically advanced and sustainable aircraft in production, and this would add to Canada's overall effort to reduce their carbon footprint. Moreover, this tax would have the perverse effect of incentivizing operators to purchase and register aircraft in other countries. Dampening demand for new, made-in-Canada aircraft sales also has an implication for Canada's aviation talent pipeline, as you will hear from my colleague from the Canadian Owners and Pilots Association.
The negative impacts will also be felt by non-aviation Canadian businesses that rely on aircraft as a business tool. All the way from construction and mining to the C-suites of Canadian corporations, it is our view that any benefits in imposing this tax are far outweighed by the costs. Compared with other items the luxury tax would apply to, their revenue brought in by aircraft is projected to be limited. According to the parliamentary budget office, the totality of this tax on vehicles, yachts and aircraft will generate $150 million per year. The bulk of that, 70%, is anticipated to come from vehicle sales, and the remainder from boats and aircraft. Therefore, we're looking at tax revenues from the sale of aircraft of less than $15 million per year.
Moreover, this tax is unfair and unsupportable as Canadian taxes such as GST and applicable PST are already applied to the purchase of aircraft, while the personal use of an aircraft is already recognized as a non-deductible taxable benefit to the individual. As well, the Income Tax Act does not specify or limit the type or size of aircraft. An airplane of any size can be used for business purposes. The fact that the Income Tax Act makes no distinction as to what type of aircraft could be used for business purposes directly contradicts the budget's definition of personal.
Our time today is limited, so we won't have the opportunity to detail the many ways that government and the business aviation community can work together to build back Canada's economy. I hope to share some of these ideas with you when we get into the question and answer period.
Thank you again for the opportunity to appear before you, and I welcome your questions.