Up to $2k rebate for efficient cars (not just hybrids) in CDN budget - guzzlers taxed

[MetroMPG]

The cool thing is: the rebates apply on a sliding scale to conventional efficient cars too, not just hybrids.

The plan will aim to be revenue neutral by also levying an additional fee on the most inefficient vehicles (not trucks though).



Source:
http://www.cbc.ca/news/background/bu...vironment.html

Of course this only comes to pass if the current minority government's budget is passed in a parliamentary vote. Otherwise, it's election time.

[MetroMPG]

Will try to dig up more details.

[MetroMPG]

Rebates are on the "combined" fuel efficiency (55% city/45% hwy).

L/100 km ... Rebate

5.5 or less ... 2,000
5.6 ? 6.0 ... 1,500
6.1 ? 6.5 ... 1,000

source:
http://www.budget.gc.ca/2007/bp/bpc3...fuel-efficient

[MetroMPG]

Wow. This just gave an enormous advantage to the Toyota Yaris in the sub-compact segment. (As if we don't buy enough of them.)

At 6.3 L/100 km combined it's eligible for the $1k rebate.

The Honda Fit doesn't qualify, missing the cutoff by 0.1 L/100 km (6.6 L/100 km). Neither does the Chevy Aveo/Pontiac Wave (7.6 L/100 km) which is way off the mark.

[rh77]

What sticks out, is that you can buy an E85 Impala or Sebring, get the credit, but not necessarily use the ethanol, right?

[Peakster]

Wow, even the Jeep Pariot made the list.

[cfg83]

RH77 -

Originally Posted by rh77

What sticks out, is that you can buy an E85 Impala or Sebring, get the credit, but not necessarily use the ethanol, right?

This was the scam in Arizona. A law was passed giving tax breaks to people who had dual-fuel systems retrofitted to their cars. People got the breaks, but no one ever used the other fuel. The person who got the law written was connected to the outfit that did the retrofit. Wa-la, quid pro quo corruption.

CarloSW2

[MetroMPG]

Right. It appears to be something like the E85 loophole that manufacturers can use in the US to exempt a vehicle from the CAFE standard that would otherwise apply.

But potentially more disturbing, I just noticed a single line in the efficiency section of the budget that deals with the new levy on inefficient vehicles.

The new levy replaces an existing federal tax on heavy vehicles: e.g. over 2,268 kilograms (5,000 pounds).

The excise tax was:

The rates are as follows:

1. $30 for the first 45 kg in excess of the automobile or wagon mass limit;
2. $40 for the next 45 kg;
3. $50 for the next 45 kg; and
4. $60 for each additional 45 kg.

(source: http://www.fin.gc.ca/susdev/sdscat_1e.html)

So it appears a Cadillac Escalade just got slightly cheaper to buy!

5,459 lbs (2wd model) = 2476 kg.

Old tax would have been: $180. Now: $0. And the vehicle isn't subjected to the guzzler levy because it's a truck (unless I've misread that part, but I doubt it).

[MetroMPG]

Originally Posted by Peakster

Wow, even the Jeep Pariot made the list.

Yup:

minivans, sport utility vehicles (SUVs) and other light trucks with fuel consumption of 8.3 L/100 km or less will be eligible for a rebate.

http://www.budget.gc.ca/2007/bp/bpc3...fuel-efficient

[MetroMPG]

Current list of 2007 m.y. efficient vehicles and flex fuel vehicles that qualify for the $1k-$2k rebate:

http://www.tc.gc.ca/programs/environ...rt/ecoauto.htm

New, unregistered 2006 m.y. cars that meet the requirements also qualify (this would include many diesels, from VW and the smart car).

Still unclear whether the gas guzzler fee applies to SUVs or only passenger cars...