Federal Budget: $4,000 Tax on Gas Guzzlers

Federal Budget: $4,000 Tax on Gas Guzzlers

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Up here in Canada, you typically get a fairly substantial rebate when you purchase a hybrid or other environmentally-friendly vehicle. That fuel-efficient rebate stayed in place with the announcement of Monday’s federal budget, but the number crunchers also pushed out something that is equal, yet completely opposite. The federal budget now calls for a new tax of up to $4,000 for “gas guzzlers”, discouraging people from buying vehicles that burn through gas faster than oil.

While there is no “overall plan to deal with climate change”, this new tax “is among $4.5 billion worth of environment-related measures in teh fiscal blueprint.” There’s a $1.5 billion commitment to biofuels like ethanol and biodiesel, for example. Interestingly, there is no mention of the Kyoto protocol anywhere in these discussions.

Pickup trucks are exempt from the new gas guzzler tax (presumably because they’d be use for “work”), but large SUVs like Hummers will get dinged by up to four grand. On the flip side, cars like the Toyota Corolla and Chevrolet Impala will be eligible for $1,000 rebates, whereas the Prius and Civic Hybrid will receive $2,000 rebates.

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