The province of British Columbia in Canada has launched new initiatives to help spur electric vehicle sales, including a reduction in provincial sales taxes (PST).
B.C. announced a 5-year PST exemption for used zero-emission vehicles (ZEVs), starting February 23, 2022, until 2027.
Also new is a higher threshold for its luxury surtax on passenger ZEVs, now starting at a base of $75,000 CAD (up from $55,000 CAD).
This affects the Tesla Model 3, making it cheaper to buy (but not the Model Y as it starts at $79,590 CAD), as the RWD starts at $61,990 CAD and Long Range from $68,990 CAD, below the new $75,000 CAD threshold.
This means up to $2,010 CAD savings off the Tesla Model 3 Long Range, for example, as customers will pay 7% PST instead of 10% PST.
Tesla has already started accommodating the changes, notes recent customers.
According to Taylor K. on Facebook, he saw his Model 3 Long Range drop in price by $2,010 CAD, thanks to PST being reduced to 7% from 10%, due to the luxury surtax threshold now at $75,000 CAD.
He explained yesterday he was set to pick up his Model 3 Long Range today.
Previously, the tax charged would have been $10,050 CAD, but Tesla reduced it to $8,040 CAD on Taylor’s invoice, after the B.C. government changes kicked into effect today.
Image via Taylor K. / Facebook
Back on April 1, 2018, B.C. revised its luxury tax for new passenger vehicles, as follows:
But now, new passenger vehicle purchases up to $75,000 CAD will only pay 7% PST.
The province will also add $79 million CAD to the Go Electric program, which offers rebates for EV charging systems, plus funds hydrogen refueling infrastructure and commercial vehicle pilot projects.
The province already offers up to $3,000 CAD in rebates towards the purchase of new battery electric or hydrogen fuel cell vehicles.
Now, PST will be exempt on “used” EVs, defined as those with over 6,000 km driven. This means if you can find a used Tesla, or any used EV, you can save PST on your purchase.
B.C. has some of the highest number of Tesla owners and these changes for used EVs and new vehicles will likely help increase sales, once again.
