Thank you very much, Mr. Chair. I apologize for the inconvenience.
Good afternoon, Minister. Thank you for being here and for your presentation.
My team and I have begun to examine the budget implementation bill. It's very long and complex but contains a lot of interesting measures. So I see it as a positive.
As my speaking time is limited, even though it was just doubled, my questions will focus more on problems.
I'd like to have some clarification of what Mr. Fast said.
The Bloc Québécois agrees with the principle of the tax on certain luxury items. However, about an hour ago, the finance department representative confirmed that no study had been done on the potential impact this tax would have on the sales, jobs and revenues of the manufacturing sectors and thus on gross domestic product. We obviously condemn the fact that no study was done before the tax was introduced.
Now I would like to discuss more specifically the luxury tax that would apply to luxury aircraft. It wouldn't apply to an aircraft that's to be used for business but would if it were used for personal purposes. The entire aerospace industry in Canada and Quebec, as well as the Quebec business community, are up in arms because the bill, as drafted, raises many concerns and doubts about the application of this tax.
Those doubts and concerns may be summed up in two points. The first is the 90% threshold for business use. The second is the fact that the tax has to be paid on all manufactured items, including those that'll be exported.
I won't dwell on the first part, which concerns the 90% threshold.
This issue was raised by the industry. An hour ago, the department representatives told us that, when company A purchases an aircraft for business purposes, it will often assign management of that aircraft to company B when it's not using it, given the high cost of the aircraft. Company B then leases the aircraft to other clients, to business people. However, it may also lease it for personal purposes. The department representatives told us an hour ago that, when that aircraft is subleased for personal purposes, it falls within the 10% margin and isn't considered as being used for business.
Is that correct?