More like complete shortsightedness of governmental bureaucrats. Or stupid governmental legislation.

We have a new federal luxury tax, not just on cars above $100,000 but also on planes above $250,000, but not of boats, because, well, politicians buy and own boats and certainly they don't want that tax to apply to them. It's the lesser of 10% of the total price or 20% of the amount over $100k.

There is 5% GST (Goods and Services Tax) also at the federal level, which applies to provinces that don't pay HST (Harmonized Sales Tax, for provinces that don't mine combining their local tax with the federal one and submit everything to the federal government and then get rebated back at a later date).

For provinces that don't do HST, they have a local Provincial Sales Tax, PST. In our province, 7% under $55,000, 8% for under $56,000, 9% for under $57,000, and 10% for under $125,000, 15% for under $150,000 and 20% for over. These are compounded with GST, hence the top rate is 26% not 25%.

So for our province there are 3 taxes, federal luxury+GST+PST.

New EVs under $55,000 gets $4,000 tax rebate, EV SUV up to $70,000 at the provincial level, with another $5,000 for cars under $55,000 at the federal level. 

For used EVs, the province waived the PST, so one only pay the 5% GST. To 'encourage' EV purchases. 

Now you see why us wanted to take advantage of government policies. 

 

 


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