New Canadian Gas Guzzler tax

[Yarnam]

Well as announced earlier today by our "Conservative" Government we as of Mar 20th have a Gas Guzzler tax also affectionately referred to as a "Green Levy".

I am quoting from information I received at work tonight.

"For new passenger vehicles (excluding trucks) with fuel-efficiency ratings of 13.0 L/100 km or more, the incentive structure will include a new Green Levy on these vehicles, payable by the manufacturer or importer when vehicles are delivered into the Canadian market. The fuel-efficiency rating will be based on the same combination of city (55 per cent) and highway (45 per cent) fuel consumption ratings used to establish the parameters for the rebate.
The new Green Levy will start at $1,000 for passenger vehicles with combined fuel-efficiency ratings of at least 13.0 L/100 km but less than 14.0 L/100 km. The rate will increase in $1,000 increments for each full litre per 100 km increase in the combined fuel-efficiency rating above the 13.0 L/100 km floor, to a maximum of $4,000, for vehicles with ratings of 16.0 L/100 km or more. The levy will apply to new vehicles delivered by a manufacturer or importer to a purchaser (usually a dealer) after March 19, 2007. Inventories of vehicles held by dealerships will not be subject to the new Green Levy. Certain consumer purchase contracts entered into before March 20, 2007, will also be grandfathered. With the introduction of the new levy, the existing excise tax on heavy vehicles will be eliminated effective March 20, 2007."

So here's what it all means

The only LX vehicles that I can see that will attract this tax will be the SRT's. They work out to 13.98 so they "should" attract the $1000 level. All other LX's get better than 13 so it shouldn't add any new taxes to the majority of them.

Again this is preliminary and I will keep you posted on any new info I get.

[Kuldip]

I just caught a glimpse of it on the news, this is insane! i think the rebate on the hybird cars is far to low!

[Yarnam]

I just caught a glimpse of it on the news, this is insane! i think the rebate on the hybird cars is far to low!

I would assume then you are in favour of the "Gas Guzzler" tax?

[thewagon]

Dayuum, amazing how you Canuks can afford to live up there.
The next criminal robbing a bank should call it a "withdrawal tax" since that's what the gov't does when they rob their countrymen

[Yarnam]

Dayuum, amazing how you Canuks can afford to live up there.
The next criminal robbing a bank should call it a "withdrawal tax" since that's what the gov't does when they rob their countrymen

Amen

[Cdn_Magnum]

Well, I think its time we all stand up here and call our local representatives and voice our opinions. We are getting royally screwed AGAIN! Its ok for the government reps they dont have to worry about paying for transportation or gas... its only us lowly peeons that take it from behind each and every time!

[Yarnam]

I just can't believe a Conservative Government brought in a Gas Guzzler tax. Seems to me they have forgotten what their party stands for. How about increased Federal spending of 14.4% in the next 2 years. Wow, for a minute there I thought they were Liberals

[Cdn_Magnum]

Well... at least heres a link for those who care http://www.davidsuzuki.org/Take_Action/Politicians.asp

Lets go Canada! Enough of the 'Oh well' attitude

[Yarnam]

I can't stand David Suzuki but some excellent advice and tips on that page. Nice link!!!

[Kuldip]

I would assume then you are in favour of the "Gas Guzzler" tax?

I am still holding out on judgement of the budget haven't read it in detail, however, if they do truly want to offer rebate for comsumer to switch to hybrid and other technologies then the rebate should be like $10,000. or more... i do like the idea of getting a small rebate on the smaller cars too.

[lumpy92]

I totally agree, what's the point of offering a $2,000 rebate on a car that costs you well over $5,000 more than the gas version. Yes, you're saving at the pumps, but it would take you an awful long time to recoup $3,000 in gas savings. Make it worthwhile and if the hybrid model ends up cheaper than the gas model, don't you think they would sell more?

I do like most of the budget. The tax credits for people with kids, the income splitting for seniors (will help out the grandparents a lot) The additional 2 years to contribute to your RRSP before converting to a RIF. All of these are good tings (in my opinion) and I'm glad that this budget is going to pass through.

As for the gas guzzler tax, doesn't the US have a $2,100 gas guzzler tax on the SRT's? I guess I figure that if you can afford $50K for a car, you can probably swing $51K. I know it sucks cause we're getting hosed at the pumps, but that's the choice we all made when we bought these cars.

Scott
Top Banana 159 of 250

[Token]

The only LX vehicles that I can see that will attract this tax will be the SRT's.

Maybe the 300 SRT8 and the Charger SRT8, isn't the Magnum classified as an SUV? Essentially making it a truck.

[Yarnam]

Maybe the 300 SRT8 and the Charger SRT8, isn't the Magnum classified as an SUV? Essentially making it a truck.

SUV's attract the tax, pickups don't. The Magnum is an SUV This is as I understand it today, hopefully more info tomorrow

[HEMISFEAR]

And when you purchase a vehicle this tax is included before the overall taxes...those ****** bastiches!! Isn't that unconstitutional?? Taxing a damn tax?????

[Adanac Charger]

We pay tax on the money we earn so that we can pay tax when we spend what's left over. If there's anything left over after our spending and it earns interst, we pay tax on that. And, if there's anything left in your estate when you finally pack it in, it gets taxed too. The weather in Bermuda is sounding better all the time.

So much for my wife's (!) plan to get a Grand Cherokee SRT8... The price just went up by $4,000 plus another $560 in tax. Oh ya, and that's in after-tax dollars which equals about $11K in before-tax dollars.