BC Liberals table new bill arguing for zero PST on used cars sales under $20 000
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PRINCE GEORGE – As the cost of gas, groceries, housing, and cars, continue to climb through the roof, there may be some relief on the horizon. The BC Liberal Finance Critic, Peter Milobar tabled a new bill that could make purchasing used vehicles more affordable. The new Bill could see the elimination of the Provincial Sales Tax on the resale of used cars under $20 000.
Earlier this year, the NDP announced they would be adjusting the taxation scheme on used car sales, with taxes being calculated based on the vehicle’s blue book value, rather than the sale price. The Liberal bill tabled on monday aims to provide a full PST exemption for all used car sales under $20,000, that had been driven at least 6000kms. The measure could provide up to $2400 of tax relief on used vehicle purchases, depending on the resale price paid. Something car dealers say will have a major impact on way consumers spend their money
“You’ve got a choice, you could spend money on tax, or maybe you could just spend some money on things extra things like maintenance or tires. Your money goes a lot further when 7% of that purchase price isn’t going to taxation” -Don Willimont, Sales Operations Manager Wood Wheaton
According to the MNP Consumer Debt Index, 42 per cent of British Columbians are less than $200 away from insolvency at the end of each month, and 51 per cent say it is becoming less affordable to feed themselves and their family. The Used Car PST Amendment is designed to ease a major financial burdens Canadians face when seeking out a good deal on a car, and it’s the hope of the BC Liberals that by making used vehicles accessable again, Canadians that need it most might start to catch a break.
