Alberta to impose EV tax starting next Thursday
EVs tend to be heavier than their internal combustion counterparts, according to the Alberta government, causing more wear and tear on roadways without paying a fuel tax.
Starting February 13, Alberta’s electric car drivers will be subject to an EV tax. A $200 surcharge will be added to their tab when they renew their annual registration.
“Owners of electric vehicles use the same roads as other Albertan drivers,” said Alberta’s Minister of Service and Red Tape Reduction, Dale Nally. “It’s only fair they contribute to public services, including those that ensure the continued safety and upkeep of Alberta’s roads.”
The province says it addresses concerns on tax fairness, according to a prior government news release, with drivers of internal combustion engine vehicles paying similar fuel tax charges each year.
The Alberta government unveiled a $200 annual tax to electric vehicles (EV) in line with the annual fuel tax paid by drivers of gas vehicles.
— Rebel News (@RebelNewsOnline) March 3, 2024
READ MORE: https://t.co/4Bu89CBFg9 pic.twitter.com/KDxQaw4hzS
“This is a fair way for all drivers to contribute to public services, and to help keep roads and highways safe and smooth,” said Finance Minister Nate Horner.
“Alberta is joining a growing number of places across North America introducing this tax so that drivers of both electric and gas vehicles are treated the same.”
While standard electric vehicles will be subject to the tax, electric motorcycles and off-road vehicles like ATVs are exempt.
The province announced the EV tax in Budget 2024 without a timeline on its implementation, until now.
Environment Minister Steven Guilbeault has mandated that 60% of all new passenger vehicles sold by 2030 must be electric.
— Rebel News Canada (@RebelNews_CA) August 30, 2024
The cost of electric vehicles would need to plummet by 31% to meet his unrealistic sales targets.
READ by @SheilaGunnReid: https://t.co/oizKh4rnne
The tax was expected to generate $1 million in revenue last fiscal year 2024/25, and rise to $5 and $8 million in subsequent years, according to revenue projections.
EVs tend to be heavier than their internal combustion counterparts, according to the province, causing more wear and tear on roadways without paying a fuel tax.
“Are you expecting that much growth in electric cars?” asked a reporter last year. “This was brought up to me in the early days when we were discussing the fuel tax,” he replied at the time.
“If Trudeau says they’re not going to sell gas-powered vehicles by 2035, I guess we better get on with it.”
Canadian Taxpayer Federation: More than 60% of Canadians oppose electric vehicle mandate
— Rebel News (@RebelNewsOnline) October 6, 2024
'Even those who don’t drive should be concerned about the increased demand for electricity and how it will affect the cost of everything,' warned CTF's Kris Sims.
On this week's episode of… pic.twitter.com/vOKDIKloxG
On January 10, however, the federal government quietly removed its $5,000 rebates, effectively killing the mandate.
Automakers have pushed back for years, noting the mandate cannot be fulfilled with affordability and infrastructure concerns still not addressed.
Alberta Premier Danielle Smith has repeatedly called the EV pursuit “destructive” and “unachievable.” Other jurisdictions have made similar conclusions, calling electrics unreliable and not worth the risk.
According to the Department of Transportation, Canada sold or leased only 546,000 EVs since 2019, when the program launched, reported the Epoch Times. Electrics constitute only 11.7% of all vehicle sales in 2023, a far cry from 20% slated for 2026.
Auto industry representatives slam the Liberals' "Zero Emission Vehicle mandate."
— Rebel News (@RebelNewsOnline) January 14, 2025
"Instead of incorporating industry and expert input, the federal government relied on ill-conceived analysis from environmental groups posing as automotive experts." pic.twitter.com/yemsaFgK2D
With plummeting sales, optimistic projections were recently considered “a complete fantasy,” according to industry groups, who called for the mandate’s end.
A report last August 29 from the Budget Officer confirmed most Canadians could not afford electric cars without taxpayer handouts. “We estimate the relative ownership cost of battery electric vehicles would need to decrease by 31 percent to meet the zero emission vehicle sales target,” it claimed.
Electric vehicles are $6,000 more on average than gas-powered vehicles, according to Canadian Black Book. In addition, a 2023 Regulatory Impact Analysis Statement says drivers face more than $17 billion in added costs from the mandate.
That counters claims from Minister Guilbeault, who repeatedly lauded its cost-savings. “Once you drive a car off the lot the savings on fueling and maintenance costs are enormous,” he told reporters in 2023.
Alex Dhaliwal
Journalist and Writer
Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.
Help fund Alex's journalism!
Featured Stories
15:07
COMMENTS
-
Bruce Atchison commented 2025-02-10 23:16:02 -0500I’ve seen first hand what big trucks do to residential roads. EVs are similar in weight to smaller trucks so it’s only fair that the owners pay for the roads their vehicles damage. I’m glad Danielle Smith is ending this tax holiday for them.
