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most Model S and X after April 1,2018 will cost consumers 6-11% more!

Discussion in 'Canada' started by Paul Carter, Mar 26, 2018.

  1. Paul Carter

    Paul Carter Active Member

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    British Columbia's new luxury tax increase will cost most consumers 20.75% for 125k to under 150k and 26% for above 150k. That's a 6% increase for a basic Tesla and 11% for a Performance trim. Ouch. The BC Government thinks paying an extra 6 to 11% on such purchases are affordable to those making these purchases. The forecasts is for $20 million additional tax revenue over two years.

    Existing leases will see an increase in their prices too. The tax on their original purchase is subject to these new luxury tax rates.

    The federal 5% GST is also now compounded on top of the provincial PST tax rate of 15% for 125k to under 150k and 20% for 150k and above. So hence its effectively 20.75% not 20% and 26% not 25%.

    upload_2018-3-26_21-41-56.png
     
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  2. Tony_YYZ

    Tony_YYZ Tezler Guru

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    So anyone that is currently in a lease will have their prices affected? How is that reasonable? Someone leased and agreed to a certain price which they were comfortable with and then all of a sudden the price will be hiked during their lease term?

    Please tell me I'm interpreting this incorrectly.
     
  3. Phillip L

    Phillip L Gas Passer

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    Typical brain dead projection of a government. They take current sales numbers and assume their gouging will not change the behaviour of people. Of course, there will be fewer of the cars sold; so less tax revenue than they project.
     
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  4. Visscher

    Visscher Member

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    Typical because they think like lawyers. If they thought like scientists or businessmen it would be a different story. Take, for example, an embarrassing example, Trump. He is lowering taxes for people like me in the US and also for large corporations, but has maintained or increased tax revenue collected.
     
  5. Paul Carter

    Paul Carter Active Member

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    I wish I could. Say the lease is $2,750 /month for the bare bones example I've given. Previously the total with tax was $ 3,162.50. Now payments after April 1, 2018 is $ 3,465.00. $275.00 more PST and $27.50 more GST.
     
  6. Tony_YYZ

    Tony_YYZ Tezler Guru

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    That is just overwhelmingly bad. Do they not anticipate a mob of pissed off people getting upset over this?
     
  7. Phillip L

    Phillip L Gas Passer

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    They are NDP. Don’t care. Know where their constituency is. Looks good to them to be screwing the “rich”. Ideology trumps policy.
     
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  8. S'toon

    S'toon Knows where his towel is

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    #8 S'toon, Mar 27, 2018
    Last edited: Mar 27, 2018
    What are you talking about? He's INCREASED the deficit. That's why the GOPers are now talking about cutting social programs, and entitlements.

    Funny thing. Every time over the the past 40 years, governments have tried increasing tax revenues by taking in less taxes, it hasn't resulted in more tax revenue. Just ask Kansas, who had their budget designed by Art Laffler of the Laffler Curve scam how well that worked.
     
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  9. Paul Carter

    Paul Carter Active Member

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    Yea its not amusing many. And no surprise the new car dealers association (NCDA) doesn't like it.

    From '25 per cent is a big number': B.C. luxury car dealers brace for impact of new surtax | CBC News

    So does one conclude NCDA thinks electric vehicles above 77k are just a luxury and that other cars & trucks between 55k and 77k are not?
     
  10. Tony_YYZ

    Tony_YYZ Tezler Guru

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  11. sitter_k

    sitter_k Active Member

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    I guess their constituents want them to put those "Rich Chinese" in check given its recent policies...
     
  12. Astraviel

    Astraviel Member

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    The older I get the more I hate the NDP.
     
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  13. sitter_k

    sitter_k Active Member

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    Yeah that's usually what happens with political views with age lol
     
  14. ytwytw

    ytwytw Member

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    Same as foreign buyer tax for property.

    NDP doesn’t even give a buffer time and cause buyer to close a house in 3 days

    ON is much more reasonable on this

    #MoveOutofBC
     
  15. ebatmobile

    ebatmobile Member

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    Do you write for Buzzfeed because this is a clickbait title at best. Next time post the location as it is specific to BC.
     
  16. Paul Carter

    Paul Carter Active Member

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    My apologies, I thought I had "in BC" at the end of that and see that it doesn't.

    --
    update: I reported myself to add "in BC". o_O
     
  17. sauce

    sauce :P

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    Braindead. They're hurting one of the rare car companies that actually do something (and do it right) to curb transportation sector emissions.

    The one party besides the greens you'd expect would get it.
     
  18. sakimano

    sakimano Active Member

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    this is what happens when you vote NDP

    Ontario is suffering the same approach. Weak governments who sell billions of taxpayer dollars to unions and special interest groups for votes, and then they spend wastefully as if there was a limitless supply at their disposal.

    Lazy governments that would rather just jack up taxes to pay for their foolish spending than sharpen their pencils and find efficiencies in the system. Sickens me to watch it.
     
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  19. jkirkwood001

    jkirkwood001 Supporting Member

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    In a word, yes.

    Don't tell me an S is not a luxury compared to a LEAF. If you need more space, you could buy two LEAFs for less than the price of an S (and get the rebate on both BTW). If you need AWD like me, I agree there's slim pickings until the 3 AWD is released, besides the X which is over the threshold.
     
  20. jkirkwood001

    jkirkwood001 Supporting Member

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    I don't think that's fair: they're not hurting companies that care, there not helping with a subsidy companies that make cars that most people can't afford, a rebate that would be, as well all know, using our tax dollars to help rich people.

    The performance version, by definition, is a luxury! Nobody needs it, why subsidize it?

    In other words, by capping the rebate, the government is saving tax dollars for the 95% of tax payers that can't afford a car over $75 K. Do you still think that's unreasonable?
     

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