Whats wrong with tax breaks for hybrid cars?
I enjoy Bill Tieleman’s column and read it every week, but I must disagree with a comment about the tax reduction for hybrid vehicles in his “car dealers” story [“Car dealers zoom away with Liberal fuel”, February 24-March 3]. Many consumers who wish to buy a more environmentally friendly car have been writing to the federal and provincial governments about reducing the sales tax on these cars. There are only three hybrids available in Canada that I know of (Toyota Prius, Honda Accord, and Ford Escape), all with a price tag in excess of $35,000 when the sales taxes are added. Gas-powered versions sell for about $5,000 less, so there is little or no incentive for consumers to buy the low-pollution hybrids. Reducing or eliminating the sales taxes brings the prices of hybrids close to the price of the gas versions. There is little loss of tax revenue, since less than one percent of new cars sold are hybrids, and the benefits to the environment far outweigh the tax loss. It is certainly a
