spectras only
06-25-2007, 12:47 PM
New Green Levy on Fuel-Inefficient Vehicles
For new passenger vehicles (excluding trucks) with fuel-efficiency ratings
of 13.0 L/100 km or more, the incentive structure will include a new
Green Levy on these vehicles, payable by the manufacturer or importer
when vehicles are delivered into the Canadian market. The fuel-efficiency
rating will be based on the same combination of city (55 per cent) and
highway (45 per cent) fuel consumption ratings used to establish the
parameters for the rebate.
The new Green Levy will start at $1,000 for passenger vehicles with
combined fuel-efficiency ratings of at least 13.0 L/100 km but less than
14.0 L/100 km. The rate will increase in $1,000 increments for each full
litre per 100 km increase in the combined fuel-efficiency rating above the
13.0 L/100 km floor, to a maximum of $4,000, for vehicles with ratings
of 16.0 L/100 km or more. The levy will apply to new vehicles delivered
by a manufacturer or importer to a purchaser (usually a dealer) after
March 19, 2007. Inventories of vehicles held by dealerships will not be
subject to the new Green Levy. Certain consumer purchase contracts
entered into before March 20, 2007, will also be grandfathered. With
the introduction of the new levy, the existing excise tax on heavy vehicles
will be eliminated effective March 20, 2007.
It is expected that this measure will increase federal revenues by
$110 million in 2007–08 and $105 million in 2008–09.
For new passenger vehicles (excluding trucks) with fuel-efficiency ratings
of 13.0 L/100 km or more, the incentive structure will include a new
Green Levy on these vehicles, payable by the manufacturer or importer
when vehicles are delivered into the Canadian market. The fuel-efficiency
rating will be based on the same combination of city (55 per cent) and
highway (45 per cent) fuel consumption ratings used to establish the
parameters for the rebate.
The new Green Levy will start at $1,000 for passenger vehicles with
combined fuel-efficiency ratings of at least 13.0 L/100 km but less than
14.0 L/100 km. The rate will increase in $1,000 increments for each full
litre per 100 km increase in the combined fuel-efficiency rating above the
13.0 L/100 km floor, to a maximum of $4,000, for vehicles with ratings
of 16.0 L/100 km or more. The levy will apply to new vehicles delivered
by a manufacturer or importer to a purchaser (usually a dealer) after
March 19, 2007. Inventories of vehicles held by dealerships will not be
subject to the new Green Levy. Certain consumer purchase contracts
entered into before March 20, 2007, will also be grandfathered. With
the introduction of the new levy, the existing excise tax on heavy vehicles
will be eliminated effective March 20, 2007.
It is expected that this measure will increase federal revenues by
$110 million in 2007–08 and $105 million in 2008–09.