Luxury Goods Tax and EVs

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This campaign is now complete as the deadline for submitting feedback ended on Sep 30. Thanks for the support!

What is the proposed Luxury Goods Tax?

The Government of Canada announced its intention to introduce a new Tax on Select Luxury Goods (the Luxury Tax), as part of Budget 2021, effective as of January 1, 2022.

Imposing a luxury tax on battery electric vehicles is counterproductive to the federal government reaching its Zero Emission Vehicle targets of 100% new sales by 2035.

The transportation sector accounts for roughly ¼ of Canada’s Greenhouse Gas Emissions. The government must ensure that all of its policies and programs are aligned with its targets of 40~45% GHG reductions by 2030, 100% EV sales by 2035, and net-zero carbon emissions by 2050.

Emerging zero-emission light-duty trucks, which many middle-class Canadians require for their line of work, are priced above the $100,000 threshold proposed in the luxury tax. Those looking to purchase an electric vehicle in Canada already face a number of barriers; The imposition of the luxury tax will provide a further disincentive to potential buyers who would be subjected to the additional tax as proposed.

Battery Electric Vehicles (BEV) should be exempt from this tax (up to $250,000) which includes boats, vehicles (including cars and trucks) or personal aircraft. By exempting zero-emission vehicles from this tax, we believe this will further encourage adoption of zero-emission vehicles, including in the luxury segment. By also exempting aircraft and boats, it will encourage commercialization of these electric zero-emission vehicles to be designed and sold in Canada.

We must act quickly and decisively to incentivise the purchase of EVs!

How can I help?

It’s easy! Fill out our pre-written email form to contact the Department of Finance and let them know that now is not the time to add a tax to electric vehicles.

NOTE: This campaign is now complete.

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