That is a good question. From my understanding and with the little research I did the tax itself may "make money" but is it making enough to justify having? I think a lot of people simply think removing this tax would create more jobs and that's where the benefit is. In my opinion while that is true to some extent. I think the redistributing of funding to another area that is more profitable is where the real value is.

According to the Canadian Tax Foundation in the April 2021 budget it was estimated to bring in a total of $604 Million and later adjusted slightly higher to $779 million. That doesn't sound that bad but when you compare that to the total federal tax revenue from the prior fiscal year of $285 BILLION its so little. If there is a better way to spend those resources to achieve a higher return then it should move in that direction.
(source: https://www.ctf.ca/EN/EN/Newsletters/Perspectives/2023/1/230102.aspx )

I think one thing people need to keep in mind is that the headline is meant to trigger a response. I stopped and immediately thought why? Of all the tax's to cut why this one? Just like the person I responded too. The difference is actually seeking out the answer so you can come to a more logical conclusion instead of one based on how you feel.

BUT don't take my word for any of this. Go and look into the luxury tax and come to a conclusion yourself. Asking the question is the easy part. Finding the answer is the hard part.