Electric car owners in Quebec to see increase in taxes and fees: Quebec budget

In Quebec’s latest budget – tabled Tuesday – electric vehicle owners will have a new annual contribution of $125 starting in 2027 to finance the road network. Free travel on toll bridges and ferries for EV’s will also come to an end, and additional tax for luxury car owners and an increase in insurance premiums are also coming.

“The $125 fee that the government says is for road maintenance and supporting transit, to me, sends the wrong message,” said Daniel Breton, President and CEO of Electric Mobility Canada.

According to Breton, the government’s choice to target electric car owners, contradicts their goals of reducing oil consumption and decreasing the number of gas vehicles by 40 per cent for 2030.

 “I’ve been saying this for years, if not decades, that we should have a fee-bate system where big polluters and big cars that consume a lot of gas should get a surtax or a fee so that they can pay for the rebate for electric cars,” he explained.

But other experts at the Canadian Automobile Association (CAA) argue that with electric cars present on our roads for more than a decade now and with more electric cars joining gas car owners on the road each year, this announcement doesn’t come as a surprise.

“We think it was predictable and it’s probably a fair way for every road user to contribute to maintaining these roads who are in dire need of love,” said Jesse Caron, automotive expert at CAA-Quebec.

“For people who don’t drive a lot of kilometers per year, that might become a factor and they might just delay their adoption of that new technology. EV drivers who drive like 20,000 kilometers a year, even with these new fees of $125 per year, they will still contribute a lot less than a gas vehicle owner,” Caron went on to explain as he made the comparison of the new annual fee versus the gasoline tax gas car owners pay every time they fill up their tank.

Although, the annual tax isn’t the only factor drivers will have to take into consideration when deciding whether to stick with a gas engine or make the switch to an electric vehicle – they must now also consider a new 1 per cent tax on all luxury vehicles above $62,000.

“There was an exemption for electric cars, you know, that tax above below $75,000,” lamented Breton. “There was no luxury tax for electric cars, but now they’re saying gas and electric cars are going to be on a level playing field.”

But on the bright side, with the increasing demand for electric cars over the years, buyers now have more models to choose from.

“There’s a lot of vehicles on offer that cost much less than $62,000,” expressed Caron.

For those wondering whether there are any incentives left for the purchase of a new electric vehicle, as of April 1st, it won’t be all bad news.

“The $4,000 rebate is back, which is good news,” said Breton. “The rebate for the purchase of an EV charger for your home is back, which is good news as well,” he added.