While many places around the world are implementing tax exemptions and subsidies for electric vehicles to promote their development, in the province of Alberta, Canada, things are going the opposite direction.
Under Alberta’s new policy, starting from January 2025, electric vehicle owners will have to pay an additional $200 tax per year. The province’s representatives stated that this is a maintenance fee to contribute to the upkeep of the road infrastructure and compensate for the fuel tax that electric vehicle owners do not pay.
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Just like many other places across Canada, electric vehicle sales in Alberta are rapidly increasing. According to statistics, from March 31, 2023, until now, Alberta has recorded nearly 9,350 new electric vehicles registered throughout the province, a significant increase compared to 5,680 vehicles during the same period in 2022. In 2023, the number of hybrid vehicles registered in Alberta was 43,648, an increase from 35,341 vehicles in 2022.
William York, the president of the Alberta Electric Vehicle Association, expressed his confusion regarding the government’s justification for the new tax based on the weight of electric vehicles.
York compared the weight of a Tesla Model 3 with that of a BMW 4 Series and stated that both vehicles weigh more than 1,587 kg. He pointed out that there are many electric vehicle models that are lighter than gasoline vehicles, so the given reason seems somewhat illogical. York is not alone in his disagreement with the province’s new regulation, as many electric vehicle owners in Alberta feel the same way.
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“The $200 fee does not make any sense because there are electric vehicles that are very light and only travel very little each year, or there are electric vehicles that are very heavy and travel up to 50,000 km per year,” York stated, emphasizing that the Alberta government’s decision regarding electric vehicle users is unfair.
According to Auto News Canada, this fee will help increase the local tax budget by approximately $1 million in the 2024-2025 fiscal year. This number will increase to $5 million in 2025-2026 and $8 million in 2026-2027.
The province’s government stated that they will release detailed information and implementation guidelines for the new policy in the upcoming fall.
Thai Son (Tuoitrethudo)
