Canadian Government 2007 Budget - Green Tax and Green Incentive

**Tideland Prius** · 03-21-2007, 12:09 AM

Jim Flaherty, the Conservative government's Finance Minister, tabled his latest budget yesterday, March 19. Beyond measures to restore fiscal balance in Canada and to reduce taxes for working families, a series of incentives were announced that could have a significant influence on the kind of vehicles Canadians will buy from now on. Indeed, the Harper administration has come up with two specific solutions: a tax on high-polluting, large-displacement vehicles and rebates on fuel-efficient vehicles through the ecoAuto program.

A tax on large-displacement vehicles
Details about how this tax will be implemented are not yet known. However, we do know that it could make the government $220 million richer over the next two years. Automakers will first have to assume the costs, which could spring from a base $1,000 amount to no less than $4,000 in the case of fuel-inefficient V8-powered vehicles such as the Jeep Grand Cherokee, Ford Explorer, Ford Expedition, Chevrolet Suburban, Hummer H2/H3 and Toyota Sequoia. Unfortunately, automakers will most likely react by increasing the base price of said models, therefore making consumers pay even more for this green tax. The bottom line is: if you don't want to shell out extra cash, choose a smaller, less thirsty vehicle.

Rebates on fuel-efficient vehicles
In order to encourage Canadians to buy smaller, more fuel-efficient vehicles and to allow them to help reduce greenhouse gas emissions, the federal government launched the ecoAuto program, an integral part of Transport Canada's ecoTransport strategy. What this means is that people who purchase or lease a highly fuel-efficient vehicle after March 20, 2007, will get a rebate of up to $2,000. This incentive will cost the government $160 million over the next two years. Let's remind you that the Quebec government has recently increased from $1,000 to $2,000 the maximum PST amount that can be refunded on any sale or long-term lease of a new hybrid vehicle between February 20, 2007, and January 1, 2009. In some cases, the total rebate can reach $4,000. Now that's interesting!

Click This Text For a List of Eligible Vehicles

kinghuang · 03-21-2007, 10:08 AM

I hope the rebate is still around when the next Prius comes out. I'll gladly take advantage of it!

**Tideland Prius** · 03-21-2007, 01:27 PM

Heck yeah!

03-21-2007, 12:09 AM	#1
Tideland Prius Moderator of the North Join Date: Oct 2004 Location: Canada Posts: 26,989 My Car: 2010 Prius Model: N/A Package: Technology Package (Canada) Thanks: 1,043 Thanked 1,180 Times in 853 Posts Friends: 32	Jim Flaherty, the Conservative government's Finance Minister, tabled his latest budget yesterday, March 19. Beyond measures to restore fiscal balance in Canada and to reduce taxes for working families, a series of incentives were announced that could have a significant influence on the kind of vehicles Canadians will buy from now on. Indeed, the Harper administration has come up with two specific solutions: a tax on high-polluting, large-displacement vehicles and rebates on fuel-efficient vehicles through the ecoAuto program. A tax on large-displacement vehicles Details about how this tax will be implemented are not yet known. However, we do know that it could make the government $220 million richer over the next two years. Automakers will first have to assume the costs, which could spring from a base $1,000 amount to no less than $4,000 in the case of fuel-inefficient V8-powered vehicles such as the Jeep Grand Cherokee, Ford Explorer, Ford Expedition, Chevrolet Suburban, Hummer H2/H3 and Toyota Sequoia. Unfortunately, automakers will most likely react by increasing the base price of said models, therefore making consumers pay even more for this green tax. The bottom line is: if you don't want to shell out extra cash, choose a smaller, less thirsty vehicle. Rebates on fuel-efficient vehicles In order to encourage Canadians to buy smaller, more fuel-efficient vehicles and to allow them to help reduce greenhouse gas emissions, the federal government launched the ecoAuto program, an integral part of Transport Canada's ecoTransport strategy. What this means is that people who purchase or lease a highly fuel-efficient vehicle after March 20, 2007, will get a rebate of up to $2,000. This incentive will cost the government $160 million over the next two years. Let's remind you that the Quebec government has recently increased from $1,000 to $2,000 the maximum PST amount that can be refunded on any sale or long-term lease of a new hybrid vehicle between February 20, 2007, and January 1, 2009. In some cases, the total rebate can reach $4,000. Now that's interesting! Click This Text For a List of Eligible Vehicles __________________ 2005 Tideland Pearl Premium Package 25/10/04 VVT-i Emblem, Sport Pedals, All-Weather Mats, Cargo Mat, EV Mod, JDM Prius Footwell Lighting, DICE iPod Kit, LED lights 2008 Deep Black smart fortwo passion coupé - sold (6.1L/100km) 2010 Blue Ribbon Metallic Technology Package 29/08/09 OEM All-Weather Mats, Homemade Console Pads, LED lights, 5000K HID, OEM Fogs, Euro Mudguards, OEM Cargo Mat, Heatshield "Ask an Expert" on Facebook I am not employed by Toyota, and the opinions expressed by me as a Prius Expert are not those of Toyota.

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03-21-2007, 10:08 AM	#2
kinghuang Senior Member Join Date: Feb 2005 Location: Calgary, AB, Canada Posts: 112 My Car: 2004 Prius Model: Package: B Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	I hope the rebate is still around when the next Prius comes out. I'll gladly take advantage of it!

03-21-2007, 01:27 PM	#3
Tideland Prius Moderator of the North Join Date: Oct 2004 Location: Canada Posts: 26,989 My Car: 2010 Prius Model: N/A Package: Technology Package (Canada) Thanks: 1,043 Thanked 1,180 Times in 853 Posts Friends: 32	Heck yeah!