B.C. Budget Eliminates PST Exemption for Used EVs
British Columbia is ending its provincial sales tax (PST) exemption for used electric vehicles (EVs) nearly two years ahead of schedule, a move tucked quietly into the recent provincial budget. The change, effective May 1, has raised concerns among dealers and EV advocates.
The B.C. government is phasing out a tax exemption on the purchase of used EVs, years ahead of schedule.
Energy Minister Adrian Dix explained the decision, stating, “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,”
Areev Zaman of FlexCar Auto Group in Maple Ridge believes the change could hurt EV sales, saying, “I honestly see it slowing down the sale of EV vehicles.” Zaman added, “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 (VEVA), echoed these concerns, pointing out that the move coincides with the federal government’s pause on its EV incentive program. He noted that used EVs have been a more accessible way for many people to get into electric vehicles.
“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 added.
Porter also highlighted the cost savings potential. “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 province is facing a significant budget deficit, estimated at $10.9 billion. Dix estimated the early end of the PST exemption would save the province around $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 the federal government has paused its EV incentive program, British Columbia still offers rebates on electric vehicles, with the amount depending on income and vehicle type. According to S&P Global, one in four new cars sold in B.C. in the third quarter of 2024 were electric. Current B.C. legislation mandates this number rise to 100% by 2035.
