Sask. gov’t rolls out EV road-use fee, vaping tax as promised in budget

The Saskatchewan government followed through Tuesday on two of its budget pledges.

The government introduced amendments to The Fuel Tax Act that will require owners of electric passenger vehicles registered in Saskatchewan to pay a new annual road-use fee of $150 starting Oct. 1.

The government also introduced legislation to create the new Vapour Products Tax, which will add a 20 per cent tax to the retail price of all vapour liquids, products and devices. That’s to take effect on Sept. 1.

Electric vehicles

In the budget, the government said owners of electric vehicles would pay the new fee to even the playing field with those who drive gas- or diesel-powered vehicles.

Those drivers pay for provincial highway maintenance through a fuel tax at the pump, but owners of electric vehicles weren’t contributing an equal amount.

Government calculations determined drivers of non-electric vehicles pay on average $150 per year per vehicle in fuel tax, so the government instituted the road-use fee for electric vehicles. It will be collected when an electric vehicle is registered with SGI.

“Electric passenger vehicles are being purchased in ever-increasing numbers across Canada and around the world,” Finance Minister Donna Harpauer said in a media release.

“These vehicles contribute to wear and tear on provincial roadways, but because they do not consume traditional fossil fuels, their registered owners are not contributing to highway maintenance through the provincial fuel tax.”

The government noted it might expand the fee to commercial vehicles and interjurisdictional trucking. It also may consider applying a tax at charging stations.

Vaping tax

The six per cent Provincial Sales Tax will be collected on vapour products sold in Saskatchewan through Aug. 31. After that, vapour products will be subject to the 20 per cent Vapour Products Tax.

As well, starting June 1, heat-not-burn tobacco sticks will become a separate category under The Tobacco Tax Act and will be taxed at 20.5 per cent per stick.

“These measures will help discourage the use of these products by young people and by other non-smokers,” Harpauer said.