Pierre Poilievre Screenshot/CPAC
News

Tories to scrap Liberals’ tax on gas-powered cars

Jen Hodgson

Conservative leader Pierre Poilievre on Thursday promised to get rid of Mark Carney’s Liberals’ $20,000 tax on gas-powered cars that is set to go into effect in 2026.

Poilievre earlier promised to scrap the GST on Canadian-made cars for as long as President Donald Trump’s tariffs remain in place, as well as maintain a Keep Canadians Working Fund “to protect the jobs of autoworkers directly affected” by the tariffs.

Speaking at a press conference in Halifax, the Tory leader announced his goal to make life “more affordable for hardworking families” by cutting taxes in the auto manufacturing sector.

The Tories in their “technology not taxes” policy will maintain “all existing supports” such as the “clean incentives for the auto sector supply chain” and the construction of EV and battery plants.

“The Carney tax is an assault on Canadian workers and families,” said Poilievre about the steep tax on gas-powered vehicles.

“It will skyrocket car prices, shut down manufacturing plants in Oshawa and Windsor, and send thousands of good Canadian jobs to the United States, just like Trump wanted.”

He said the Carney Liberals will limit the number of gas-powered vehicles that can be sold as of 2026 — with manufacturers “who dare to sell more than the Liberal quota” to be hit with a $20,000 tax per vehicle, a cost that will be inevitably passed on to the consumer.

Further, he said that within a decade, the Liberals will ban gas-powered cars completely.

“I’ve got nothing against EVs — if you want one, buy one — and make sure it’s one made in Canada. But they shouldn’t be forced on people by the government,” said Poilievre.

“A new Conservative government will put you back in the driver’s seat so you can choose the vehicle that works best for your family — gas, hybrid, or electric — for a change.”

The Conservatives in a press release detailed research from the Canadian Automobile Association (CAA) that found electric vehicles lose up to 40% of their battery life in cold weather between -7°C to -15°C.

“While winters in cities like Winnipeg and Thunder Bay are getting colder, Mark Carney is focused more on ideological crusades than on the daily realities Canadians face,” reads the statement, adding that Carney is “out of touch” with Canadians.

“The Liberal mandate will be devastating to our auto industry, putting pressure on manufacturing plants in Oshawa and Windsor and sending thousands of good-paying jobs to the United States, just as Trump wants.”

The Tories referenced another study by the Canadian Journal of Economics that found the Liberal mandate would eliminate 38,000 auto sector jobs and result in up to $138.7 billion in losses for the automotive sector — “if it survives at all.”