Regina, Saskatchewan — Two federal ministers have issued concerns regarding Saskatchewan’s plan to introduce a $150 annual tax on electric vehicles.
Environment Minister Jonathan Wilkinson and Transport Minister Omar Alghabra outlined their concerns in a letter to Saskatchewan Premier Scott Moe.
“This provincial tax on electric vehicles does not benefit the climate, consumers or workers,” the pair wrote in the letter. “An approach that creates financial barriers to new low carbon technologies would send the wrong signal to the world.”
No other province or territory has a special tax on electric vehicles.
In response to the letter, Moe wrote: “Highways and road systems do not maintain themselves. The road fee use paid by electric vehicle owners will help to maintain this crucial infrastructure.”
He also noted that 19 U.S. states–including California–have institute taxes on EVs. Three Australian states are also reportedly considering the move.
Federal officials, however, said since electric vehicles generally cost more, their owners pay more in sales tax than internal combustion engine buyers. They also pay sales tax on electricity.
They also say Saskatchewan holds many of the minerals used in EVs and said encouraging the use of zero-emissions vehicles in the province presents an economic opportunity.
“We appreciate your newfound concern about Saskatchewan’s economy,” Moe responded.
