Alberta introduces $200 electric vehicle tax

“Alberta is joining a growing number of places across North America introducing this tax so that drivers of both electric and gas vehicles are treated the same.”

The tax will be collected at the registry or online via MyAlberta eService when the vehicles are registered, and each year when the owners renew their registrations.

Dale Nally, minister of Service Alberta, said it’s a fair policy because EV drivers use the same roads as those who drive internal combustion vehicles.

Nally also said it’s easy for Albertans to pay the charge.

“I’m pleased that Alberta registries have stepped up and made it easier for Albertans to comply by providing convenient locations to pay,” he said.

Electric motorcycles and electric off-highway vehicles — such as ATVs — are exempt from the tax, as are hybrid vehicles.

Alberta’s new EV tax comes amid some national pushback against electric vehicles.

Transport Canada said Friday it was halting the incentive program that offers Canadians rebates of up to $5,000 when buying or leasing electric vehicles.

Funding for the program has run out ahead of the scheduled March 31 pause due to high demand, officials said.

As a result, automakers in Canada are pushing back.

Groups including the Canadian Vehicle Manufacturers’ Association, Global Automakers of Canada and the Canadian Automobile Dealers Association collectively made the request on Tuesday after they were informed the incentive program was ending more than two months early.

“Mandating Canadians to buy (zero-emission vehicles) without providing them the supports needed to switch to electric is a made-in-Canada policy failure,” said Brian Kingston, head of the CVMA that represents Ford, GM and Stellantis.

Canada has mandated that 20 per cent of all new vehicles sold must be electric by 2026 and 100 per cent by 2035.

Electric vehicle incentives are intended to help kick-start the EV market and reduce the price tag for early adopters, with the hope that EV prices will come down as the market expands.

So far though there’s been limited progress on EV prices as North American manufacturers have focused production on their priciest and most profitable vehicles, while Canada has also imposed 100 per cent tariffs on cheaper EVs from China.

Meanwhile, Alberta Municipalities has revealed a new $1.7-million initiative funded by Ottawa to assist communities and businesses purchase and set up EV charging stations.

Natural Resources Canada’s Zero Emission Vehicle Infrastructure Program will help offset the cost of up to 46 per cent of eligible and approved projects.

— With files from The Canadian Press

by Christian Oldale, Eli J. Ridder

Alberta introduces $200 electric vehicle tax

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