The world is changing rapidly. The economy of the 21st century will increasingly run on electricity, so countries that can provide abundant, reliable, and affordable power will be best positioned to attract investment, drive innovation, improve productivity, and sustain economic growth.
Canada starts from a position of strength, with a nearly 80% clean grid and some of the lowest electricity costs in the G7. The shift to clean and affordable power is extending to transportation, with Budget 2026 expanding charging infrastructure to support the accelerating shift toward electric vehicles.
Today, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, announced that Canada's government is proposing to exempt more fully electric and hydrogen-powered vehicles from the luxury tax. Specifically, the price threshold at which the tax applies would increase from $100,000 to $150,000 for these vehicles. The measure would be effective as of tomorrow, subject to subsequent parliamentary approval.
The change recognizes the higher upfront cost of zero-emission vehicles and supports the global shift to electric vehicles (EVs). Raising the threshold also aligns with the Government's broader emissions targets. All other vehicles would remain subject to the $100,000 price threshold.
Central to Canada's mission of becoming a global energy superpower is producing, supplying and controlling our own energy. As our economy and industries become more energy intensive, electricity demand is expected to double by 2050.
