Electric cars—do the math on subsidy’s effect on tax base

Presently, an electric car, when using electricity, pays no ‘road tax.’ The loss of this revenue…will need to be recovered.

To the editor:

All levels of government are promoting electric vehicles by providing incentives.  In the case of the B.C. government they are using taxpayer money to partially fund the installation of public recharging stations (Capital News, March 19: Kelowna Campus Generates Buzz Over Electric Car Chargers).

This article goes on to use BC Ministry of Environment information that states ‘electric vehicles can cost as little as $300 per year in electricity compared to upward of $1,500 to fuel a gas powered car.’

What is being ignored is at least one third of the figure quoted for a gas powered car is tax ($500) much of which is allocated to road improvements/construction. Presently, an electric car, when using electricity, pays no ‘road tax.’ The loss of this revenue is not sustainable and will need to be recovered.

Considering funding alternatives for public transit in the Lower Mainland, increasing fuel taxes may not be workable if the demand for electric cars increases and revenues from fuel taxes softens.  One of the options being considered is a ‘mileage tax’ where you pay a tax based on the distance that you are driving and not by what the vehicle uses for fuel to get there.

Consumption taxes (HST/GST/PST), including those on fuel, have one disadvantage in that they do not promote the government to ‘drive’ prices lower. Price decreases, while good for the taxpayer, result in lower tax revenue for government.

Canadians have long complained about the price of fuel (and other goods) when comparing to the U.S., yet the Canadian government remains complacent on finding the reason—perhaps there is not enough incentive for change.

T. Kinsman,  Westbank

 

 

Just Posted

Imagine Kelowna’s future this week

Four community meetings will take place on the future of the city

Accidents mount as snow falls

Kelowna drivers are having a tough time with worsening conditions

Kelowna’s global awareness festival set to go

Festival organizers get $22,800 grant from federal government to help stage this year’s events

Bus slams into truck at Kelowna intersection

A transit bus and a pick-up truck came together in the noon hour in Kelowna

Downtown Kelowna shopping mall getting face lift

The Towne Centre Mall on Bernard will be renamed and renovated inside and out

Scandia Jungle mini golf course reopening

Kelowna - Rutland Elementary students were the first ones to try the revamped course Tuesday

Castlegar homicide victim identified

The victim was 38-year-old Jordan Workman of Castlegar, B.C.

B.C. Liberal leadership candidates get one last prime-time pitch

Leadership campaign to be decided in Feb. 3 vote

Letter: Dictatorships don’t happen by accident

Kelowna letter-writer says people following Donald Trump are enabling him

Team chaplain reflects on time with Silverbacks

Kenny Toews served as a mentor and spiritual leader to the team for six seasons

Drawings connect autistic student with the world

Leifen Mitchell-Banks creates colourful cartoon characters at Salmon Arm Secondary.

Lake Country skier named Olympic alternate

Ian Deans will be a back up for the men’s ski cross team in South Korea

Andrew Scheer on trade, Trump and Trudeau

Canada’s Conservative leader begins three-day visit to B.C.

10 Safeways in Lower Mainland to close, union says

Locations in Vancouver, Burnaby, Surrey, Coquitlam, Richmond and Mission slated to shut

Most Read