Alberta government announces $200 tax on electric vehicles

 

In Alberta, the provincial government has announced that electric vehicle owners will have to pay a tax of $200. The tax will be effective from January 1, 2025. The tax was announced during the 2024 budget presentation.

Although the number of electric vehicles in Alberta is currently low, the number of electric vehicle purchases will increase in the coming years. Electric vehicles are heavier than other vehicles. The government's explanation is that it causes damage and wear and tear to the roads in the province. Moreover, the provincial government says that electric vehicle owners do not pay fuel tax.

Owners have to pay the tax when they register their vehicles. The tax rate will be in addition to the existing registration fee. The provincial government says this will be in line with the approximate annual fuel tax paid by drivers of regular vehicles. Hybrid vehicles are not taxed. More details on this will be released when the legislation is introduced.

At the same time, the people of Alberta responded by opposing and supporting the announced $200 tax on electric vehicles. Some criticized the Alberta government's explanation for announcing the tax. While some said they could not pay the tax, others welcomed the government's decision.