Ottawa incentivizes electric vehicle purchases; Nova Scotia makes them more expensive

As Ottawa incentivizes Canadians to buy electric vehicles or hybrids, Nova Scotia is making it more expensive to drive them.

Nova Scotia’s budget on Monday includes a $500 fee for electric vehicles and $250 fee for hybrids — to be paid every two years.

Ottawa, meanwhile, has started offering incentives of up to $5,000 to buy electric cars and up to $2,500 for plug-in hybrid vehicles.

Sal Falk lives in a rural community on Nova Scotia’s South Shore and owns an electric car.

She says the levy is “absurd” and punishes Nova Scotians who have chosen to drive low-emission vehicles.

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Provincial officials say the levy ensures electric and hybrid car owners are contributing to road maintenance, as gas-reliant drivers are already contributing to roads through the provincial tax on fuel.

The province estimates the fees will raise $1.6 million in the 2026-27 fiscal year and $3.3 million in 2027-28.