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ARTICLE · 17 MAY 2021

Saskatchewan To Introduce A Road Use Charge For Passenger Electric Vehicles

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On May 7, 2021, Bill 34, The Fuel Tax Amendment Act, 2021 passed the third reading in the Legislative Assembly of Saskatchewan.

CanadaTransport
Keely Cameron
Keely Cameron
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On May 7, 2021, Bill 34, The Fuel Tax Amendment Act, 2021 passed the third reading in the Legislative Assembly of Saskatchewan.  Bill 34 amends Saskatchewan's The Fuel Tax Act, 2020 and The Financial Administration Act, 1993 to introduce a new road use charge for electric vehicles (EVs). While similar charges have been introduced in certain U.S. states, this is the first tax of its kind in Canada and is intended to offset the impacts on the provincial fuel tax associated with EVs.

Overview

On April 20, 2021, the Government of Saskatchewan introduced Bill 34 to create a new annual road use charge of $150 for passenger EVs registered in the province. In a recent  press release, the provincial government announced that the increasing number of EVs contribute to the wear and tear on provincial roads, and the EV owners are currently not contributing to the maintenance of the roads through the provincial fuel tax because EVs do not consume conventional fossil fuels.

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