I believe the last sentence in your column clearly states the decision facing the UARB with respect to interest payments on NSP borrowings for the much-delayed in service date of the Muskrat Falls development. NSP is entitled to claim these charges in line with the Boards previous approval. What is now requiring the Board’s approval is NSP’s application to further extend the interest payment costs to NSP customers brought about by the extended delay of the basic MF project itself. In their initial determination the UARB has indicated that they will examine how prudently NSP has managed their own construction risks vis-a-vis their ongoing knowledge of delays at the MF project itself. If the UARB believes the NSP acted prudently in this regard then I believe the interest costs will be legitably charged to NSP customers.
Electric vehicles: Who pays for loss of Excise Tax revenue?
By Maurice Rees
Self driving electric vehicles are coming our way. So is “Share-a-vehicle”. Instead of owning a vehicle, you rent one, just like a taxi. Great for cities where there is ample public transport.
This writing was prompted by CBC Radio’s Maritime Noon during the week of July 4th. The guest suggested within a decade 50% of the current auto dealerships would be eliminated as people rush to electric vehicles and instead of every family having one or two vehicles, they’d use public transport then rent a vehicle only for longer trips, or maybe vacation saving the family in excess of $6,000 per year.
On such topics in rural Nova Scotia, our eyes glaze over with a slightly different version of NIMBY – “not in my back yard”. We think “NIMLT” – “Never In My Life Time”. Hard to believe while living on a back-country gravel road frigid winter temperatures of -20 degrees and three feet of snow we could manage with an electric vehicle with any amount of reliability.
Would we want to change from our current rusty gas-consuming vehicle when cell phones have been around for 40 years and we can’t get reliable cell phone coverage along paved highways? Similarly, the internet has been around for over a decade and there are thousands of homes and businesses, who can’t get reliable internet service, let alone internet service with speeds similar to what is offered in the cities.
In their wisdom federal and provincial governments are providing assistance to install electricity charging stations. With a bit of investigation you’ll discover there are grants or subsidies of upwards of $14,000 available to those wishing to switch to a totally electric vehicle. I Googled: Canadian Subsidies for Electric vehicles. Immediately, I stumbled upon: https://plugndrive.ca/electric-car-incentives
Here is the opening paragraph: The government of Ontario offers up to $14,000 off the purchase of an electric car, up to $1,000 off the purchase and installation of a home charging station and a green license plate that allows drivers to use high-occupancy vehicle/toll (HOV/HOT) lanes when driving alone. The amount each car receives is based on four factors: battery size, number of passengers, vehicle price (including trim) and terms of lease.
Back to Maritime Noon. I called the show, but as I waited for my turn, I did more online research to see what I could find regarding the amount of provincial excise tax charged for gasoline or diesel fuel. The data for 2016 is available online at: http://www.taxpayer.com/media/2016-GTHD-EN.pdf.
The first line states: “Across Canada in 2016 total revenue from taxes on gasoline and diesel was $20 billion. Provincial governments and transit authorities get most of that with $13 billion and over $7 billion to the federal government”. In 2016, Nova Scotians spent a total of $575.57-Million in taxes for the pleasure of driving over roadways, we feel are full of pot-holes and below standard.
Nova Scotia’s initial excise tax in 2016 rate was 15.5 cents/litre and then other taxes apply. The following taxes were paid by Nova Scotians: $242,228,189 for the provincial excise tax based on each litre of gas or diesel; $133,594,501 generated from Provincial Sales Tax; $132,953,593 for Federal Excise Tax; $66,797,251 generated from Federal Sales Tax; $56,277,267 generated from Tax-on-Tax for a whopping grand total of $575,573,534.
Governments would have us believe, the excise tax on fuel is to maintain our highway system. If we presume that is correct let’s examine what might happen if in the next 10 years, one third of the gas and diesel vehicles, in the province, are taken out of service and exchanged for electric vehicles.
If we equate number of vehicles directly to consumption, a reduction of 33% of the vehicles on the road would reduce Nova Scotia’s Excise Tax on fuel by almost $80-Million per year. In other words converting 33% of the fleet to electric vehicles reduces excise tax by $1,538,461 per week or $219,780 per day. If we look at the total tax generated from gas and diesel fuel, the tax loss by eliminating 33% of the fleet amounts to a revenue reduction of $189,939,260 for all levels of government. Broken down to a week that’s $3,652,678, or $521,811 per day.
To determine the number of registered highway vehicles in Nova Scotia, I Googled, “number of registered vehicles in Nova Scotia” Then I chose “Motor vehicle registrations by province – territory. I was taken to: http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/trade14a-eng.htm
In 2016 Nova Scotia had 758,467 registered vehicles, of which 636,986 were listed as highway vehicles. Existing highways will still need to be maintained. What will replace the $80-Million lost in reduced Excise Tax revenue if 210,205 (33% highway) vehicles were converted to electricity?
If the same amount of Excise Tax is required for highway maintenance are drivers of 210,205 electric vehicles willing to pay a “up-front” excise tax replacement fee of $7.31 per week should 33% of Nova Scotia’s 636,986 highway registered vehicles in 2016 be converted to electricity.
Looking at the total tax generated from gas and diesel, converting 250,294 (33%) of highway vehicles to electricity will reduce the total tax take by $189,939,260 just in Nova Scotia. As calculated earlier, of that amount $80-Million is Excise Tax used for highway maintenance. My concern is what federal and provincial programs will be short-changed by the loss of the additional $109-Million?
How happy would electric vehicle owners be if they were asked to contribute up to $17.38 per week to cover the total tax shortfall?
Will electric vehicle owners take pity on the 66% of us who are still driving a gas or diesel vehicle by paying an annual $903.76 gas and diesel tax replacement fee over and above vehicle registration and re-charging fees? Of that amount $380.00 is Excise Tax needed for Highway maintenance.
After all Nova Scotia still needs the same amount of pot-hole filled roadways.
Your thoughts?
Maurice Rees, is publisher of the Shoreline Journal, Bass River, NS and has been part of the publishing industry in Atlantic Canada for over 54 years.
It would appear to me,as a layman,that the first and really only question that the Board must answer is
To whom do they owe a fiduciary duty, the citizens of the Province or an international company that happens to have an economic interest and Head Office in the Province.
EMA authored their own misfortune
URBA should not act as an amanuensis to rewrite the conclusion
Well it really isn’t a very big surprise that NSP will do everything it can to push ALL the costs off onto the end consumer of the energy because it has long been apparent that management of that organization is much more dedicated to the interests of Shareholders than to those of the end users of the ‘product’..
I believe the last sentence in your column clearly states the decision facing the UARB with respect to interest payments on NSP borrowings for the much-delayed in service date of the Muskrat Falls development. NSP is entitled to claim these charges in line with the Boards previous approval. What is now requiring the Board’s approval is NSP’s application to further extend the interest payment costs to NSP customers brought about by the extended delay of the basic MF project itself. In their initial determination the UARB has indicated that they will examine how prudently NSP has managed their own construction risks vis-a-vis their ongoing knowledge of delays at the MF project itself. If the UARB believes the NSP acted prudently in this regard then I believe the interest costs will be legitably charged to NSP customers.
Bill | January 13, 2018 |
Electric vehicles: Who pays for loss of Excise Tax revenue?
By Maurice Rees
Self driving electric vehicles are coming our way. So is “Share-a-vehicle”. Instead of owning a vehicle, you rent one, just like a taxi. Great for cities where there is ample public transport.
This writing was prompted by CBC Radio’s Maritime Noon during the week of July 4th. The guest suggested within a decade 50% of the current auto dealerships would be eliminated as people rush to electric vehicles and instead of every family having one or two vehicles, they’d use public transport then rent a vehicle only for longer trips, or maybe vacation saving the family in excess of $6,000 per year.
On such topics in rural Nova Scotia, our eyes glaze over with a slightly different version of NIMBY – “not in my back yard”. We think “NIMLT” – “Never In My Life Time”. Hard to believe while living on a back-country gravel road frigid winter temperatures of -20 degrees and three feet of snow we could manage with an electric vehicle with any amount of reliability.
Would we want to change from our current rusty gas-consuming vehicle when cell phones have been around for 40 years and we can’t get reliable cell phone coverage along paved highways? Similarly, the internet has been around for over a decade and there are thousands of homes and businesses, who can’t get reliable internet service, let alone internet service with speeds similar to what is offered in the cities.
In their wisdom federal and provincial governments are providing assistance to install electricity charging stations. With a bit of investigation you’ll discover there are grants or subsidies of upwards of $14,000 available to those wishing to switch to a totally electric vehicle. I Googled: Canadian Subsidies for Electric vehicles. Immediately, I stumbled upon: https://plugndrive.ca/electric-car-incentives
Here is the opening paragraph: The government of Ontario offers up to $14,000 off the purchase of an electric car, up to $1,000 off the purchase and installation of a home charging station and a green license plate that allows drivers to use high-occupancy vehicle/toll (HOV/HOT) lanes when driving alone. The amount each car receives is based on four factors: battery size, number of passengers, vehicle price (including trim) and terms of lease.
Back to Maritime Noon. I called the show, but as I waited for my turn, I did more online research to see what I could find regarding the amount of provincial excise tax charged for gasoline or diesel fuel. The data for 2016 is available online at: http://www.taxpayer.com/media/2016-GTHD-EN.pdf.
The first line states: “Across Canada in 2016 total revenue from taxes on gasoline and diesel was $20 billion. Provincial governments and transit authorities get most of that with $13 billion and over $7 billion to the federal government”. In 2016, Nova Scotians spent a total of $575.57-Million in taxes for the pleasure of driving over roadways, we feel are full of pot-holes and below standard.
Nova Scotia’s initial excise tax in 2016 rate was 15.5 cents/litre and then other taxes apply. The following taxes were paid by Nova Scotians: $242,228,189 for the provincial excise tax based on each litre of gas or diesel; $133,594,501 generated from Provincial Sales Tax; $132,953,593 for Federal Excise Tax; $66,797,251 generated from Federal Sales Tax; $56,277,267 generated from Tax-on-Tax for a whopping grand total of $575,573,534.
Governments would have us believe, the excise tax on fuel is to maintain our highway system. If we presume that is correct let’s examine what might happen if in the next 10 years, one third of the gas and diesel vehicles, in the province, are taken out of service and exchanged for electric vehicles.
If we equate number of vehicles directly to consumption, a reduction of 33% of the vehicles on the road would reduce Nova Scotia’s Excise Tax on fuel by almost $80-Million per year. In other words converting 33% of the fleet to electric vehicles reduces excise tax by $1,538,461 per week or $219,780 per day. If we look at the total tax generated from gas and diesel fuel, the tax loss by eliminating 33% of the fleet amounts to a revenue reduction of $189,939,260 for all levels of government. Broken down to a week that’s $3,652,678, or $521,811 per day.
To determine the number of registered highway vehicles in Nova Scotia, I Googled, “number of registered vehicles in Nova Scotia” Then I chose “Motor vehicle registrations by province – territory. I was taken to: http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/trade14a-eng.htm
In 2016 Nova Scotia had 758,467 registered vehicles, of which 636,986 were listed as highway vehicles. Existing highways will still need to be maintained. What will replace the $80-Million lost in reduced Excise Tax revenue if 210,205 (33% highway) vehicles were converted to electricity?
If the same amount of Excise Tax is required for highway maintenance are drivers of 210,205 electric vehicles willing to pay a “up-front” excise tax replacement fee of $7.31 per week should 33% of Nova Scotia’s 636,986 highway registered vehicles in 2016 be converted to electricity.
Looking at the total tax generated from gas and diesel, converting 250,294 (33%) of highway vehicles to electricity will reduce the total tax take by $189,939,260 just in Nova Scotia. As calculated earlier, of that amount $80-Million is Excise Tax used for highway maintenance. My concern is what federal and provincial programs will be short-changed by the loss of the additional $109-Million?
How happy would electric vehicle owners be if they were asked to contribute up to $17.38 per week to cover the total tax shortfall?
Will electric vehicle owners take pity on the 66% of us who are still driving a gas or diesel vehicle by paying an annual $903.76 gas and diesel tax replacement fee over and above vehicle registration and re-charging fees? Of that amount $380.00 is Excise Tax needed for Highway maintenance.
After all Nova Scotia still needs the same amount of pot-hole filled roadways.
Your thoughts?
Maurice Rees, is publisher of the Shoreline Journal, Bass River, NS and has been part of the publishing industry in Atlantic Canada for over 54 years.
Maurice Rees, Publisher
The Shoreline Journal / South Cumberland News
Box 41, Bass River, NS B0M 1B0
PH: 902-647-2968; Fax: 902-647-2194; Cell: 902-890-9850
E-mail: maurice@theshorelinejournal.com
http://www.theshorelinejournal.com
Maurice Rees | July 13, 2017 |
It would appear to me,as a layman,that the first and really only question that the Board must answer is
To whom do they owe a fiduciary duty, the citizens of the Province or an international company that happens to have an economic interest and Head Office in the Province.
EMA authored their own misfortune
URBA should not act as an amanuensis to rewrite the conclusion
Bill | June 9, 2017 |
Well it really isn’t a very big surprise that NSP will do everything it can to push ALL the costs off onto the end consumer of the energy because it has long been apparent that management of that organization is much more dedicated to the interests of Shareholders than to those of the end users of the ‘product’..
Bob MacKenzie | June 9, 2017 |