Federal Minister Raises Concern Over Saskatchewan’s EV Tax

Saskatchewan recently voted to impose an annual $150 tax on electric vehicle (EV) owners, and between EV owners holding protests against the tax and other government officials also questioning the decision, Saskatchewan may not be done thinking this one over just yet.

Federal Environment Minister Jonathan Wilkinson wrote a letter to Premier Scott Moe, urging Saskatchewan to reconsider its new electric EV fee, according to the Regina Leader-Post.

The minister stated that he wished to raise “concern” over the provincial budget, which includes the yearly EV tax that was created to help support highway maintenance – since EV owners technically don’t contribute to highway maintenance since they don’t pay the Fuel Tax.

Despite this, EV owners are arguing that the tax de-incentivizes buying zero-emission vehicles, considered a regressive blow to the province’s EV adoption, and amidst a world attempting to make EVs mainstream on the cusp of the climate crisis.

In the letter, Wilkinson acknowledged that the world was shifting towards EVs, and that several other countries and US states had already begun making the shift, and emphasizing that Saskatchewan needed to recognize and adopt the world’s market signals.

Wilkinson wrote, “We would hope that the Saskatchewan Party — a conservative party — understands the importance of market signals.” Wilkinson continued, “Internal combustion engine vehicles have been around for 100 years, but the world is shifting around us and zero-emission vehicles are the way forward.”

Moe replied to Wilkinson, saying “As private and commercial vehicles make this shift, maintenance of our road system must also remain sustainable,” wrote the premier. “Unfortunately, highways and road systems do not maintain themselves.” He emphasized 19 U.S. states have implemented the same fees.

An internal poll across Canada’s provinces found that the vast majority of Canadians, including 58% of residents surveyed in Saskatchewan and Alberta, support federal EV rebates for those purchasing EVs – another measure employed around the world to help spur on mainstream EV adoption.