Victoria, British Columbia – Budget reforms in British Columbia may impact the used vehicle market sooner than expected, according to a disgruntled official opposition critic.
Starting Oct. 1, private vehicle sales will be taxed based on the vehicle’s reported purchase price and the average wholesale value. This tax will apply to the greater of the two values, according to the budget change announcement on the B.C. government’s website.
This approach is “intended to address tax avoidance arising from the underreporting of the price of motor vehicles from private sales,” according to the province’s 2022/2023 fiscal plan.
In an interview on the Mike Smyth Show, Peter Milobar, a member of B.C.’s legislative assembly said “you will have to pay a value that the government will deem that the car is worth.”
At the time of writing, used zero-emission vehicles and vehicles purchased by First Nations individuals, the Federal government and domestic or foreign diplomats are exempt from this policy change.
