Government isn't about to remove any taxes.I admit the luxury tax for a new vehicle really burns my ass!
It would be smart to remove the luxury tax from EVs to encourage more folks to buy more EVs.
Considering...
The Government of Canada collects about $5 billion per year in excise taxes on gasoline, diesel, and aviation fuel as well as approximately $1.6 billion per year from GST revenues on gasoline and diesel (net of input tax credits). The Canada Revenue Agency, a part of the government, collects these taxes.
Collectively, the provincial governments collect approximately $8 billion per year from excise taxes on gasoline and diesel.
The federal taxes go into general coffers and help to fund a range of programs: $2 billion of the approximately $5 billion collected from federal excise taxes goes into the now permanent annual Gas Tax Fund for municipal infrastructure. Provincial tax revenues usually go to fund road repair and construction, and additionally in some provinces a portion of revenues (for example, 2 cents/litre in Ontario) is also distributed directly to municipalities.
It won't be long before governments start taxing EV owners to make up for lost revenue.
 
				
		




 
 
		
 
					
				 
						
					