If you’re looking to buy a used electric vehicle in B.C., you may want to act fast.
The province is scrapping a provincial sales tax exemption on used EVs effective May 1, nearly two years ahead of schedule.
The tax change was tucked quietly into Tuesday’s provincial budget.
“The intent of these incentives overall was to address the difference between EV’s and other vehicles, and as that gap closed, these programs were always intended to be phased out,” Energy Minister Adrian Dix said Thursday.
But dealers and advocates for electric vehicles say the change could help dissuade people from choosing to go zero-emission for their next car.
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“I honestly see it slowing down the sale of EV vehicles,” said Areev Zaman with Maple Ridge car dealership FlexCar Auto Group.
“I don’t think customers will take it any different. They might be more inclined to buy a gas vehicle.”
Robert Porter, president of the Vancouver Electric Vehicle Association, said dropping the exemption after the federal government paused its own EV incentive program will further slow adoption.
“People were waiting for electric vehicles to come down in price … so used ones have been a really great opportunity for people to get an electric car,” he said.
“Most of the used products on the market are, you know, $20,000 to 35,000. That savings could pay for that home charger.”
The move comes as the province faces a record $10.9-billion budget deficit.
Dix estimated that scrapping the exemption two years early would save the province about $100 million.
“This makes sense now in terms of the priorities people have right now, the tariffs and trying to prepare for that,” Dix said. “This isn’t the right expenditure right now.”
While Ottawa has put the brakes on its EV incentive program, British Columbia does still offer a rebate on electric vehicles. The amount a person is eligible to receive depends on their income and the type of vehicle they’re choosing.
One in four new cars sold in British Columbia were electric in the third quarter of 2024, according to S&P Global.
Under current B.C. legislation, that number will need to rise to 100 per cent by 2035.
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