Affordability continues to be one of the defining issues facing British Columbians. Whether families are buying a vehicle, maintaining the one they already own, or considering the transition to an electric vehicle, costs continue to rise and consumers are feeling the pressure.
As the provincial government develops Budget 2027, today the New Car Dealers Association of BC presented its priorities, with a focus on three key areas: tax policy, skilled trades, and electric vehicle readiness and practical policies that can make life more affordable while supporting one of British Columbia’s largest retail sectors.
These priorities are linked by a common theme: ensuring government policy reflects today’s realities and supports British Columbians at a time when affordability challenges remain front and centre.
MODERNIZING OUTDATED TAX POLICY
One of the clearest examples of policy that has failed to keep pace with reality is British Columbia’s Luxury Vehicle Tax.
The tax threshold has remained fixed at $55,000 for 15 years. During that same period, the average price of a new vehicle has increased to more than $66,000. This increase is not simply a reflection of inflation. Modern vehicles now include advanced safety technologies, lower-emission powertrains, sophisticated driver-assistance systems, and innovations that help protect drivers, passengers, pedestrians, and everyone who shares our roads.
As a result, many vehicles purchased by working families, including SUVs, minivans, and pickup trucks, are now captured by a tax that was originally intended to target luxury purchases.
Government should either eliminate what has effectively become a vehicle purchase tax on working families or, at minimum, modernize the threshold so it accurately reflects today’s marketplace. Affordability should not be undermined by tax policies that no longer align with consumer realities.
We also believe the province should also reconsider its planned expansion of the Provincial Sales Tax to professional and security services. Vehicle dealerships increasingly rely on security measures to protect employees, customers, facilities, and inventory. Adding PST to these services increases operating costs at a time when businesses are already managing significant economic pressures. Many in our industry view this as little more than a tax on safety.
INVESTING IN THE NEXT GENERATION OF SKILLED TRADES
Affordability is also tied directly to workforce capacity. British Columbia’s automotive sector is projected to face a shortage of approximately 20,000 workers over the next decade. Demand for highly skilled service technicians continues to grow as vehicles become increasingly sophisticated and as hybrid and electric vehicle technologies become more common.
Unfortunately, the number of training seats and specialized programs has not kept pace with industry demand.
Expanding automotive trades training, increasing post-secondary capacity, and supporting EV-specific technical education are practical investments that will benefit consumers and employers alike. A strong automotive workforce helps ensure British Columbians can access the service and repairs they need while supporting thousands of family-supporting jobs across the province.
MAKING EV ADOPTION PRACTICAL AND AFFORDABLE
British Columbia has established itself as a leader in electric vehicle adoption, with more than 222,000 EVs now operating on roads across the province. However, consumer adoption cannot continue to grow without the infrastructure necessary to support it.
Today, there are only approximately 2,400 public DC fast-charging ports available province-wide. For many consumers, particularly those living in suburban, rural, and northern communities, access to reliable charging infrastructure remains one of the most significant barriers to EV ownership.
The province must accelerate investment in charging infrastructure while also providing greater certainty regarding its Zero-Emission Vehicle mandate. Although government has indicated that revisions are coming, the new framework has yet to be finalized. Dealers, manufacturers, and consumers continue to operate under existing requirements while awaiting clarity about future obligations.
Successful EV adoption depends on consumer confidence. That confidence comes from knowing charging infrastructure is available, reliable, and accessible, and from understanding the long-term regulatory framework that will shape the market.
A PRACTICAL PATH FORWARD
The automotive sector contributes nearly $17 billion in retail sales annually and supports approximately 30,000 family-supporting jobs throughout British Columbia. It is an industry that touches virtually every community in the province.
Budget 2027 presents an opportunity for government to address affordability in a meaningful way by modernizing outdated tax policies, investing in skilled trades, and ensuring the infrastructure exists to support a practical transition to electric vehicles.
These are not simply industry priorities. They are policies that will help British Columbians afford the vehicles they need, access the services they rely upon, and navigate the future of transportation with confidence.
That is a goal everyone can support.
Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected].
