Sunday, April 21, 2024
NewsAlberta Adding $200 EV Tax In Next Budget

Alberta Adding $200 EV Tax In Next Budget

EV expenses going up

  • Fee meant to combat losses in fuel tax revenues

  • Alberta expects $1m next year from new tax

The Government of Alberta is planning a tax on EVs starting next year. The extra $200 fee on EVs is being imposed because the province says EVs need to pay their fair share.

According to the province, $200 is about in line with the estimated fuel taxes a gas or diesel vehicle will pay every year. Per Stats Canada, the average Albertan drives 15,200 km per year (fewer than many provinces), and with fuel taxes in the province at 13 cents per litre, the figure is mostly accurate for owners of cars or crossovers.

The province said that EVs “cause more wear and tear on provincial roadways,” though it also said that “fuel tax revenue is not dedicated to funding construction and maintenance of provincial roads.”

The tax will be added to registration fees, and the province expects it to collect $1m in 2024. For the coming years, Alberta expects strong EV growth as it predicts income to climb to $8m for 2026. Total road funding from the province for 2024 is expected to be $955 million.

“Government will continue to review the sustainability of the fuel tax, including the increasing use of alternative fuels, and consider changes to protect tax revenue,” the province said in the budget documents.

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