The province has rejected a request made by the District of Squamish on pedal-assisted electric bikes.
Last year, the district had asked the province to exempt electric bikes from the Provincial Sales Tax (PST) due to their health and environment benefits.
BC allows a PST exemption on the sale of bicycles and tricycles as well as their parts and accessories. Through a UBCM resolution, the district had requested the province to extend the exemption to electric bikes as well.
Government of BC has now responded by saying they won’t approve such an exemption.
“B.C.’s tax approach to electric assisted bicycles has not changed and is generally consistent with the rest of Canada. In short, there was not a PST exemption introduced for e-bikes in the Budget 2020,” said Chandler Grieve, a public affairs officer for the Ministry of Transportation and Infrastructure.
Grieve said e-bikes are becoming increasingly popular and the government does offer some programs to encourage their use.
The BC Scrap-it program, for example, includes an incentive that offers an $850 credit towards e-bike purchases from participating retailers.
In April, the BC government also announced that e-bikes will be allowed on trails across the province.
An electric bike, or motor-assisted cycle, is a two- or three-wheeled cycle with a seat, pedals and an electric motor (up to 500 watts). The motor-assisted cycle (MAC) cannot be gas-powered, however.
The BC Cycling Coalition also launched a campaign to convince BC to exempt e-bikes from PST, and has submitted a formal request to the province.
The coalition is also asking the government to add rebates, similar to those available for electric cars,
Electric bikes suitable for commuting typically cost $1500-$3000, making the suggested PST exemption worth about $105 – $210 for buyers, plus on-going PST charges on maintaining parts.
“For individuals, the re-added tax could be a barrier to purchasing or converting to an e-bike,” the coalition says.