Owners are currently debating the implications of Alberta’s $200 electric vehicle registration tax.

Movie DetailerCanada Owners are currently debating the implications of Alberta’s $200 electric vehicle registration tax.
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Bassam Mahfoud made a purchase of a Tesla in December, joining fellow Canadians in the trend towards zero-emission vehicles.
The sales of electric vehicles in Canada continue to set records each year. Despite this trend, Mahfoud was not caught off guard by the Alberta government’s recent decision to enforce an annual tax on electric vehicles.
Electric vehicle owners in the province will now be required to pay an additional $200 for this new fee, starting as early as January 2025.
Finance Minister Nate Horner, upon presenting the first provincial budget on Thursday, clarified that the tax must be paid during vehicle registration and will be in addition to the existing registration fee.
The tax is intended to address road wear and tear and compensate for the fuel tax that electric vehicle owners are exempt from.
Hybrid vehicles, however, will be excluded from this tax.
Unlike many other provinces, Alberta does not currently provide incentives for the purchase of electric vehicles.
While the federal government offers incentives of up to $5,000 for light-duty zero-emission vehicles, including electric ones, Mahfoud views Alberta’s new policy as a setback in transitioning towards electric vehicles.
William York, the president of the Electric Vehicle Association of Alberta, expressed confusion over the government’s justification of weight as a factor for implementing the tax.
Comparing the weights of a Tesla Model 3 and a BMW 4 Series, both vehicles were found to weigh slightly over 3,500 lbs.
York stated that there are numerous electric vehicles with weights equal to or less than their internal combustion engine counterparts.
He believes that a flat $200 fee is unreasonable since different electric vehicles have varying usage patterns and weights.
The province anticipates generating $1 million from the electric vehicle tax in 2024-25, with the figure expected to rise to $5 million in 2025-26 and $8 million by 2026-27 as more Albertans opt for electric vehicles. Further details will be disclosed in the upcoming fall session when the legislation is introduced.

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