Bill C-285
Not yet scheduled
Used Car Tax Cut Act
This bill would amend the Excise Tax Act to remove or reduce the GST/HST applied to the sale of used motor vehicles.
Sponsor · Andrew Lawton
What it means for you
Canadians buying a used car could pay less tax at purchase, making second-hand vehicles more affordable.
The debate · 3 points
Supporters say
- Used car prices have doubled over the past seven years, making reliable transportation increasingly unaffordable for middle-class Canadians.
- The federal sales tax is collected every time a used car is sold, meaning the government can collect tax on the same vehicle multiple times — effectively taxing Canadians two, three, or four times on one asset.
- Removing the sales tax on used cars would save buyers thousands of dollars at a time when inflation is already straining household budgets.
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