The Canadian province of Nova Scotia has implemented a new biennial levy on electric vehicles and plug-in hybrids, effective October 1. Owners of EVs will be charged CAD 500, while plug-in hybrid owners will pay CAD 250 every two years. The fee applies to passenger cars, light trucks, and vans during permit issuance or renewal, excluding conventional hybrids.
The government projects the measure will generate CAD 1.6 million in the 2026-27 fiscal year and CAD 3.3 million in 2027-28. Officials state the levy aims to ensure EV and PHEV drivers contribute to road maintenance, as they pay less fuel tax than drivers of internal combustion engine vehicles. Owners selling their cars early may request a partial refund.
The policy has faced criticism from advocacy groups like the Electric Vehicle Association of Atlantic Canada, which claims the fee could hinder EV adoption. This move makes Nova Scotia the fourth Canadian province to introduce such a levy, following Saskatchewan, Alberta, and Quebec. Meanwhile, the federal government continues to offer purchase incentives.
