Thank you for your question.
Yes, as Mr. Blackburn explained, the problem is that the tax is paid directly at the time an aircraft is sold. But the aircraft may stay in Canada for several months to undergo modifications, for example, or for other reasons. Only after the plane is exported is the rebate given. In the meantime, there may be cash flow problems on the order of several million dollars, problems that other manufacturers in other countries aren't subject to.
Obviously, the tax itself is problematic, but assuming that there are reasons that make it acceptable, in our opinion, it is aimed more at individuals, the customers who buy an aircraft for personal use, and not for commercial use. Under the bill, to be exempt from the tax, the aircraft must be used for business purposes at least 90 per cent of the time, or nearly 100 per cent of the time. As well, the calculation is pretty complex.
We also know that the United States had a similar tax in the 1990s that was ultimately abolished, because it turned out not to be a good idea. It puts Canadian manufacturers at a disadvantage. As well, we know that it is an important value chain, for both manufacturers and their suppliers.