Electric vehicle drivers in Alberta will soon be slapped with an additional tax as the province follows through on a promise made nearly a year ago.
The province confirmed on Thursday that starting Feb. 13, any driver registering their electric vehicle in Alberta will be subject to a $200 tax.
The price is said to be in line with what drivers of internal combustion engine vehicles pay in fuel tax annually.
“This is a fair way for all drivers to contribute to public services, and to help keep roads and highways safe and smooth. Alberta is joining a growing number of places across North America introducing this tax so that drivers of both electric and gas vehicles are treated the same,” said Alberta’s Finance Minister Nate Horner.
While standard electric vehicles will be subject to the tax, hybrids, electric motorcycles, and electric off-road vehicles like ATVs are exempt.
“Owners of electric vehicles use the same roads as other Albertan drivers,” said Alberta’s Minister of Service and Red Tape Reduction, Dale Nally. “It’s only fair they contribute to public services, including those that ensure the continued safety and upkeep of Alberta’s roads.”
The tax was previously announced in Alberta’s 2024 budget and passed in the legislature in Nov. 2023.
The provincial government previously projected the tax would generate $1 million in revenue for the 2024-25 year. It estimated the tax’s revenue would increase incrementally with the acceleration of EV adoption, reaching $5 million in 2025-26 and $8 million in 2026-27.
The federal Liberals’ plan to phase out gas vehicles mandates that at least 20 per cent of new vehicles purchased by 2026 are electric. By 2030, this number would grow to 60 per cent, and by 2035, all new cars sold need to be electric.
Alberta Premier Danielle Smith previously called the mandate “destructive” and “unachievable.” Other jurisdictions have made similar conclusions, calling EVs unreliable and not worth the risk.
In addition, a previous poll highlighted that two-thirds of Canadians feel the 2035 ban is unrealistic. A previous study also showed that a full transition to EVs might not even be possible due to the constraints of the power grid.
The interest to purchase electric vehicles in Canada has been continuously diminishing yearly. The top concerns listed by those turning against EVs were their limited driving range, their hefty price tag, and the costly replacement of batteries.
According to Consumer Reports, electric vehicles have 79-per-cent more problems than gas vehicles. Additionally, electric vehicles can see more than a 40-per-cent decrease in range on cold winter days. Electric vehicles have an average price tag of $73,500, according to Canadian Black Book, more than $6,000 higher than gas-powered vehicles.
