ChargingOctober 1, 2026

Nova Scotia introduces new levy on EVs and plug-in hybrids

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Automobile

Nova Scotia introduces new levy on EVs and plug-in hybrids

The Canadian province has introduced a new levy on EVs and plug-in hybrids, with owners set to face additional charges of CA$500 and CA$250 respectively every two years. The levy takes effect on October 1 and will apply when vehicle permits are issued or renewed.

Image: Unsplash/Tom Carnegie

By Ciaran Daly

01.10.2026 - 18:30

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The new levy covers passenger cars, light trucks and vans, but excludes conventional hybrids which cannot be charged externally. The measure forms part of the province’s 2026-27 budget, with the government claiming that the levy will ensure EV and PHEV drivers contribute towards road construction and maintenance given that they pay less fuel tax than drivers of petrol or diesel vehicles.

To this end, the provincial government estimates that the charge will generate CA$1.6 million in the 2026-27 fiscal year and CA$3.3 m in 2027-28. Owners who sell their vehicles before their registration expires can claim a partial refund. John Lohr, minister of finance and the treasury board for the provincial government, explained: “Nova Scotians pay for construction and maintenance of our provincial roads and highways when they buy gas, through the tax included in the price. Electric vehicle owners don’t pay it, and plug-in hybrid owners pay less. This levy will ensure that all vehicle owners are helping to pay for the cost of building and maintaining the roads we all rely on.”

The measure has been criticised by a number of EV advocates. The Electric Vehicle Association of Atlantic Canada has argued that the levy could slow the adoption of EVs, calling it “short-sighted and irresponsible”. Abby Lefebvre, a coordinator at Halifax’s Ecology Action Centre, told _Global News CA_: “This sends a very confusing message… it’s discouraging to people who are looking to explore EVs and discouraging to those who have already taken that step and are enjoying their EVs to now have this (fee) slapped on them.”

It makes Nova Scotia the fourth Canadian province to introduce a specific levy on EVs; Saskatchewan charges CA$300 annually, while Alberta introduced a CA$200 annual fee in 2025. Quebec is also scheduled to bring in a CA$125 annual charge in January 2027. This comes just as Canada’s federal government has reinstated purchase incentives of up to CA$5,000 for BEVs and CA$2,500 for plug-in hybrids.

cbc.ca, novascotia.ca, globalnews.ca

cbc.ca

Reply

02.10.2026 um 15:17

The "gas tax" paid at the gas pump doesn't go directly to pay for road maintenance. That money is just dumped into the general tax revenue that's used to pay for everything. Yes, some of the general revenue is used to maintain roads. But characterizing the gas tax as a fund to maintain road is simply a way to justify charging extra on gas purchases. Road maintenance is paid out of the general tax revenue. I have a plug-in hybrid sedan. I pay gas tax on the rare occasions that I fill up the small gas tank in my vehicle. But I also pay tax on every volt of electricity that goes into my battery whenever I charge at home. That electricity tax is also just added into the general tax revenue, the same source of the road maintenance funds paid by drivers of gas powered vehicles. Drivers of gas powered vehicles don't pay any electricity tax on their vehicles because they don't use any to drive their vehicles. Fair enough. But charging EV and plug-in hybrid owners this extra EV fee (ostensibly for road maintenance) is only charging them (us) twice because we already pay tax on our electric "fuel" into the general revenue. These EV fees are regressive and unfair in my view.

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