Cars and tax fairness
Let's go car shopping in Manitoba: The first car is a brand-new Ford Mustang Mach-E that costs more than $55,000 and the second is a used 2008 Toyota Corolla for $8,500.
Which of these cars do you think comes with a $4,000 cheque from the Manitoba government?
It's not the used Corolla.
That's right, the Manitoba government has been bankrolling electric vehicle buyers since last year. When someone buys a new EV costing up to $70,000, the government sends them a $4,000 cheque.
Used EV buyers can expect $2,500.
The government initially was spending
$25 million on the subsidy, but in Budget 2025, the government revved up the spending by $14.8 million.
That's almost $40 million worth of cheques going to Manitobans who can afford EVs.
Like a reverse Robin Hood, the government is taking tax dollars from people who can't afford a new EV and handing it over to wealthier people who can.
All the Corolla buyer gets is a seven per cent retail sales tax bill from the provincial government. After the person saved up $8,500 to buy the used Corolla, they will have to fork over about $595 extra to the government.
It doesn't matter how many times the used vehicle has been bought and sold and taxed before. Every time a vehicle changes hands in Manitoba, the government sends an RST bill, even if the tax has already been paid multiple times before.
And the sale price is not the only thing the government considers when sending you your tax bill. If the government's black book value shows the car is worth more than you paid for it, it sends you an RST bill for that amount, instead of the deal you got.
However, if you paid more than the black book value, the government expects an RST cheque for the higher amount. The government doesn't care if you shopped around to find a deal on your latest car, it expects to get its full cut.
Manitobans who can afford to purchase a brand-new EV don't need cheques from the government. But Manitobans looking to buy used could definitely use a break on their taxes.
That's because the majority of EV owners earn more than $100,000 per year, according to government briefing notes. The average Manitoban earns about $60,000.
A quick look at AutoTrader shows more than 200 gas- or diesel-powered vehicles for sale in Manitoba under $10,000. There are less than five used electric vehicles available under that price. However, none of them would even qualify for the government's subsidy because they are more than four years old.
And even if you could find a used electric car that's new enough and in your price range, it's unlikely to fit most Manitobans' needs. If you work a job that requires carrying stuff in your vehicle or live somewhere without EV chargers, a used Nissan Leaf compact car isn't going to cut it, regardless of the government subsidy.
The federal government doesn't even charge GST on vehicles bought through private sales. Alberta doesn't charge sales tax on any vehicle, because it doesn't have a provincial sales tax.
Manitobans aren't usually buying a used Corolla because it's their dream car, they are buying it because it's a necessity to get to work or take their kids to school.
It's already ludicrous to get a tax bill when you purchase any necessity, but it is especially unfair when the tax has already been paid on the vehicle, potentially multiple times.
And it just adds insult to injury that your wealthy neighbour is getting a $4,000 cheque from the government for their luxury EV purchase.
Instead of trying to take as many tax dollars as possible by taxing the same used vehicle multiple times, the government should cancel its multimillion-dollar handout to wealthy EV buyers and axe the sales tax on used vehicles to give buyers a break on their next car purchase.
Gage Haubrich is the Prairie director for the Canadian
Taxpayers Federation.
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Opinion Let's go car shopping in Manitoba: The first car is a brand-new Ford Mustang Mach-E that costs more than $55,000 and the second is a used 2008 Toyota Corolla for $8,500. Which of these cars do you think comes with a $4,000 cheque from the Manitoba government? It's not the used Corolla. That's right, the Manitoba government has been bankrolling electric vehicle buyers since last year. When someone buys a new EV costing up to $70,000, the government sends them a $4,000 cheque. Used EV buyers can expect $2,500. The government initially was spending $25 million on the subsidy, but in Budget 2025, the government revved up the spending by $14.8 million. That's almost $40 million worth of cheques going to Manitobans who can afford EVs. Like a reverse Robin Hood, the government is taking tax dollars from people who can't afford a new EV and handing it over to wealthier people who can. All the Corolla buyer gets is a seven per cent retail sales tax bill from the provincial government. After the person saved up $8,500 to buy the used Corolla, they will have to fork over about $595 extra to the government. It doesn't matter how many times the used vehicle has been bought and sold and taxed before. Every time a vehicle changes hands in Manitoba, the government sends an RST bill, even if the tax has already been paid multiple times before. And the sale price is not the only thing the government considers when sending you your tax bill. If the government's black book value shows the car is worth more than you paid for it, it sends you an RST bill for that amount, instead of the deal you got. However, if you paid more than the black book value, the government expects an RST cheque for the higher amount. The government doesn't care if you shopped around to find a deal on your latest car, it expects to get its full cut. Manitobans who can afford to purchase a brand-new EV don't need cheques from the government. But Manitobans looking to buy used could definitely use a break on their taxes. That's because the majority of EV owners earn more than $100,000 per year, according to government briefing notes. The average Manitoban earns about $60,000. A quick look at AutoTrader shows more than 200 gas- or diesel-powered vehicles for sale in Manitoba under $10,000. There are less than five used electric vehicles available under that price. However, none of them would even qualify for the government's subsidy because they are more than four years old. And even if you could find a used electric car that's new enough and in your price range, it's unlikely to fit most Manitobans' needs. If you work a job that requires carrying stuff in your vehicle or live somewhere without EV chargers, a used Nissan Leaf compact car isn't going to cut it, regardless of the government subsidy. The federal government doesn't even charge GST on vehicles bought through private sales. Alberta doesn't charge sales tax on any vehicle, because it doesn't have a provincial sales tax. Manitobans aren't usually buying a used Corolla because it's their dream car, they are buying it because it's a necessity to get to work or take their kids to school. It's already ludicrous to get a tax bill when you purchase any necessity, but it is especially unfair when the tax has already been paid on the vehicle, potentially multiple times. And it just adds insult to injury that your wealthy neighbour is getting a $4,000 cheque from the government for their luxury EV purchase. Instead of trying to take as many tax dollars as possible by taxing the same used vehicle multiple times, the government should cancel its multimillion-dollar handout to wealthy EV buyers and axe the sales tax on used vehicles to give buyers a break on their next car purchase. Gage Haubrich is the Prairie director for the Canadian Taxpayers Federation.
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