The BC Government has issued an immediate update regarding the Provincial Sales Tax for new and used motor dealers and leasing companies. These changes coincide with the budget plan and its climate change action policy. The full update can be read by clicking the link at the bottom of the article. Two important points from the report to note are as follows:
First, starting February 23, 2022, the cut-off for paying luxury tax on a new zero-emission vehicle (ZEV) has gone up. A luxury tax starts when a vehicle is over $55,000 with a graduated scale as noted in Bulletin PST 116. For zero-emission vehicles, the luxury tax will start once a zero-emission vehicle is over $75,000.
Second, starting February 23, 2022, the purchase of a used zero-emission vehicle will be PST tax exempt. This also applies to used leased zero-emission vehicles. The exemption is in effect until February 22, 2027.
Read the PST Bulletin for full details about these changes by clicking here:
