The Prince Edward Island Green Party has put forward a new bill aiming to eliminate the sales tax on used vehicles in the province. Party Leader Matthew MacFarlane described the legislation, known as Bill 104, as an “affordability bill” designed to simplify the process of buying and selling cars in the region.
Currently, a 15 percent retail sales tax is applied to used-car sales, typically calculated based on the stated purchase price. MacFarlane emphasized the necessity of owning a vehicle for transportation, highlighting the financial challenges faced by various segments of the population such as young drivers, newcomers, and individuals with lower incomes.
The initiative for the bill stemmed from discussions with Islanders, automotive industry professionals, and the Green caucus. MacFarlane shared anecdotes of Islanders postponing car purchases due to the hefty tax burden associated with them. He also mentioned a common practice where buyers and sellers agree to lower the price on paper to reduce the tax amount.
The proposed bill aims to eliminate such practices, allowing individuals to purchase vehicles while retaining more funds for essential expenses and local economic contributions. MacFarlane underscored the importance of recognizing that the money saved from the tax would still circulate within the economy.
Although MacFarlane’s bill has yet to be discussed in the legislative chamber, he expressed optimism that fellow MLAs would view it as a beneficial measure to assist Islanders facing financial difficulties. The primary goal, as MacFarlane stated, is to “leave this money in Islanders’ pockets where it belongs,” emphasizing the current challenges faced by residents and the need for government support.