• Mar 21, 2007
The Canadian government's new proposed budget includes both a $2,000 incentive for buying fuel efficient vehicles like hybrids and a $4,000 tax for purchasing less efficient models like SUVs. Unfortunately, the Detroit News article doesn't specify how the budget determines what vehicles qualify for the fuel efficiency rebate and which get dinged with the heavy tax.
What affect the Canadian government's new budget will have on car buying habits in the country is unclear, as Canadians don't buy many SUVs to begin with – only around 15,000 in 2006. At the same time, the environmentally-inspired incentive/tax combo may serve to irritate the very automakers that are deciding which plants they can afford to idle or shut down completely, many of which are located in Ontario.

The plan also has plenty of loopholes that can be used to get around the tax. For instance, it doesn't apply to used vehicles, so Canadians can freely buy year-old HUMMERs for significantly less than a new one. There's always the option of driving south to purchase a car in the States, as well, though we're not clear what mess of paperwork that would create to own and operate it back in Canada.

You can read all the details about Canada's new budget and how it affects the auto industry here.

[Source: The Detroit News]


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  • 52 Comments
      • 7 Years Ago
      For those who didn't read the article it is a sliding levy. Yes, it starts at 13litres per 100km, but that's only $1000. It's $1000 more per litre until you cap out at $4000.

      There are no fuel efficient pick ups and there is no way you'll stop workers from buying them so these people with no choice are no penalized.

      The rebates start at 6.5 litres for cars, but only 8.3l for minivans, small trucks, and SUVs. This means the Ford Escape hybrid SUV recieves a *rebate* because this isn't a war on SUVs!

      If you want to buy a Hummer to tow your huge boat go right ahead, you're still free to do whatever you want.
      • 7 Years Ago
      It would be a simple fix to levy the tax on the imported new vehicle at Canada Customs dolts.
      • 7 Years Ago
      " I would imagine that people that live up in "those parts" would buy SUVs more due to the hellish weather (and subsequent driving conditions) that they must endure.""

      On the west coast we get less snow then most of the United States.
      • 7 Years Ago
      This is a good idea. Time to weed out the people that actually need SUV's for their intended use, and the fregging posers taking up 2 spots in the parking garage downtown.
      • 7 Years Ago
      I'll never understand Americans who decree Canada to be a Socialist country, yet another socialist this, socialist that. This tax was put forward by the Conservative government. One fiscally AND socially conservative.

      All you ever do is spew out the American dream all the time. How is the free market going to fix the United States being the biggest polluter and oil consumer?
      • 7 Years Ago
      #6 - Just to be the Devil's advocate, no one "needs" to tow a boat or motorhome or jetskis or etc. They CHOOSE to. Choosing to buy a big toy that requires a big truck to tow it is not the same as a need. I'm opposed to this tax because it's ridiculous, I just don't think the justification for these vehicles should be that they're a necessity, I think the justification is that people should be able to buy what they want to drive.
      • 7 Years Ago
      "As much as I hate SUVs, this is one very stupid move. Of all the places in North America where there might be a legitimate need for an SUV, I would think it's Canada."

      Despite what you think of Canada. They know how to drive in the snow without SUV. Plus they're not as fat as us and therefore they will be able to live without SUV just fine. Leave them along. You don't need an SUV to get thru the winter.
      • 7 Years Ago
      Just for your information, this new taxation was implemented by the Consevative government not leftist Liberals. The reasoning behind it is SUV's have less fuel economy so hence they POLUTE more. This is an enviromental issue, not one about gas guzzelers.
      • 7 Years Ago
      I Can't wait for GM Two Mode Hybrid SUV's, that's gonna give canada a break.
      • 7 Years Ago
      Dude, Mike, rofl

      ps, queue
      DriftPunch
      • 7 Years Ago
      First the SUVs, next will be "street race" cars with 'excessive' power...

      It's always amazing how some people cheer for things like the above when it agrees with their own personal feelings. Yet typically, these very people cry 'rights' when someone else uses the power of government to tax/ban something that they hold dear.

      For those who support this, how about we add a monthly surtax to every Kw of electricity that is used beyond the local average? Hmmm...?
      • 7 Years Ago
      Thats why the United States is a FREE country. We all have the right to buy a Hybrid Civic or a Chevy Suburban. Canada.........stick to Ginger Ale.
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