The province says electric vehicles tend to be heavier and cause more destruction on highways and roads, while owners don’t pay a provincial fuel tax. The tax will not apply to hybrid vehicles, the budget says.
During a Thursday news conference, Alberta Finance Minister Nate Horner said the tax rate is meant to be in line with the estimated fuel tax paid by a typical Alberta driver. Horner pointed to other jurisdictions that have moved forward with similar fees for electric vehicles.
“I’m interested in fixing the roads,” he said. “We need everyone to help.”
The province estimates the tax will generate $1 million in revenue for 2024-25 and is expected to grow to $5 million in 2025-56 and $8 million in 2026-27 as more electric vehicles come on board.
More details on the tax will be made available when legislation is introduced in fall 2024, the budget says.
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