The New Car Dealers Association of BC (NCDA) is warning that adding new or higher taxes in the current environment, which includes an ongoing tariff war with the United States, would be “deeply counterproductive” and ultimately have diminishing returns for the province.
The NCDA said B.C.’s Economic Update revealed a substantial debt and deficit as families continue to struggle as the cost of housing, childcare, food and other day-to-day necessities continue to rise. For many consumers, they said the price tag on a new vehicle is not achievable. Dealers are also struggling: they are seeing an increase in operating costs, from municipal property tax hikes to higher parts and vehicle costs stemming from tariffs and global supply chain disruptions.
“Every additional tax or levy weakens affordability, erodes competitiveness, and pushes consumers to look to other jurisdictions to purchase a vehicle,” said Blair Qualey, President and CEO of the NCDA, in a statement. “At some point, the government’s own revenues will continue to decline because people simply can’t or won’t buy in B.C.”
The NCDA listed consumer affordability, tax burdens, regulatory mandates, an uncertain electric vehicle market, and dealer investments as mounting pressures on both consumers and dealers. The association is urging the provincial government to follow the Fall Economic Update with action that will help relieve this pressure. pressure on consumers and businesses, not add to it.
This includes adjusting the luxury vehicle tax threshold, pausing or stopping the zero-emissions vehicle mandate timelines, reinstating stable and predictable EV rebate programs (and expanding charging infrastructure beyond urban centres), and resisting increases to the PST or introduction of new taxation measures.
“The auto sector supports 30,000 family-sustaining jobs and generates nearly $17 billion in annual retail sales,” added Qualey. “But the system is reaching a breaking point. If governments continue to add layer after layer of taxation and mandates without relief, the result will be fewer sales, fewer jobs, and less revenue for the province. No one wins in that scenario.”
