Toronto, Ontario — An item outlined in the Green Budget Coalition’s 2022 budget recommendations has caught the eye of some Canadian truck owners, as the organization put forth a recommendation in November that would charge owners of large SUVs and luxury vehicles a $4,000 fee.
The fee would be a part of a “feebate” program wherein fees collected from larger, less-fuel efficient vehicles would go towards rebate incentives for people looking to purchase zero-emission vehicles (ZEVs).
The Green Budget Coalition wrote in its recommendations that “the proposed fee would modernize and expand or replace the Green Levy program, which applies primarily to large SUVs and luxury vehicles, and the new luxury vehicle tax announced in the 2021 federal budget for vehicles over $100,000.”
ZEV purchasing incentives of more than $15,000 are capable of being financed from a maximum fee of $4,000, according to the coalition’s analysis.
“In addition to influencing demand, we expect that a well-designed feebate system would support other supply-side measures and send a strong market signal to accelerate the decarbonization of light-duty vehicles, while also encouraging investment in domestic ZEV manufacturing,” read the report.
