$150 to be applied to electric vehicles

Owners of electric passenger vehicles registered in Saskatchewan will begin paying an annual road-use fee of $150, effective Oct. 1.

The necessary amendments to The Fuel Tax Act, 2000 were introduced in the legislature this week.

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In Saskatchewan, all road-use fuel tax revenue is dedicated to provincial highway maintenance.  In the 2019-20 fiscal year, road-use fuel tax revenue totalled about $454 million in Saskatchewan, while road maintenance expenditures totalled nearly $616 million.

The average annual fuel tax paid by owners of non-electric (fuel powered) vehicles in Saskatchewan is estimated at about $150 per vehicle, according to a government press release. The government says the new road-use fee will ensure that owners of electric vehicles pay a comparable amount annually.  The revenue from this fee, as with road-use fuel tax revenue, will be dedicated to provincial highway maintenance.

The government is also considering application of a tax at charging stations.

The new electric vehicle road-use fee will be collected by Saskatchewan Government Insurance when the vehicle is registered.

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