As the provincial government begins shaping Budget 2027, the New Car Dealers Association of BC (NCDA) is calling for action on three priorities that directly affect affordability for British Columbians: modernizing outdated vehicle taxation, investing in automotive skilled trades, and supporting a practical and affordable transition to electric vehicles.
As part of the provincial pre-budget consultation process, Blair Qualey, President and CEO of the NCDA, emphasized the need for provincial policy to better align with today’s vehicle market and the realities facing consumers as affordability pressures increase and the automotive sector undergoes significant change.
“Affordability is one of the defining issues facing British Columbians today,” said Qualey. “Whether it’s the cost of purchasing a vehicle, accessing qualified service technicians, or making the transition to electric vehicles, government policy needs to support consumers and reflect today’s realities. Budget 2027 presents an opportunity to address these challenges while supporting a stronger and more sustainable automotive sector.”
The NCDA’s recommendations focus on three key priorities:
TAX POLICY AND AFFORDABILITY
British Columbians continue to face significant affordability pressures, and government policy should not unnecessarily increase the cost of purchasing, maintaining, and servicing vehicles.
The Province’s Luxury Vehicle Tax no longer reflects today’s vehicle market or the realities facing working families. The tax threshold has remained unchanged at $55,000 for 15 years, despite the average price of a new vehicle now exceeding $66,000. That increase over time, reflects significant investments in advanced technology, lower-emission powertrains, and enhanced safety features designed to better protect drivers, passengers, pedestrians, and everyone who shares our roads.
As a result, many family-oriented SUVs, vans, pickup trucks and other practical vehicles are now subject to a tax originally intended to apply only to high-end luxury purchases.
The NCDA is recommending the provincial government eliminate what has effectively become a vehicle purchase tax on working families. At a minimum, government should modernize the threshold to reflect today’s market and ensure the tax applies only to truly luxury vehicles.
The NCDA is also raising concerns about the planned expansion of the Provincial Sales Tax to professional and security services. Dealerships increasingly rely on security services to protect employees, customers, storefronts, and vehicle inventory. The expansion of PST to these services increases operating costs for dealerships and other businesses at a time when affordability remains a key concern for consumers and employers alike – and is in effect a tax on safety.
SKILLED TRADES AND WORKFORCE DEVELOPMENT
A strong automotive workforce is essential to supporting consumers and maintaining affordability. British Columbia’s automotive sector is projected to face a shortage of approximately 20,000 workers over the next decade, particularly among service technicians trained in advanced diagnostics, hybrid technologies, and electric vehicle systems.
Currently, there are insufficient seats in automotive trades programs and limited EV-specific training opportunities to meet growing demand. Access challenges are particularly pronounced in rural and northern communities, where dealerships and repair facilities already face significant recruitment challenges.
The NCDA is calling on government to expand funding for automotive trades training, increase post-secondary program capacity, and invest in EV-specific training opportunities to ensure British Columbia has the skilled workforce required to support the next generation of vehicles.
EV READINESS AND AFFORDABILITY
The transition to electric vehicles must be supported by the infrastructure and policies consumers need to make EV ownership practical and affordable.
More than 222,000 electric vehicles are currently operating on BC roads, yet there are only approximately 2,400 public DC fast-charging ports available province-wide. This infrastructure gap remains one of the most significant barriers to broader EV adoption, particularly in suburban, rural, and northern communities.
The NCDA is urging government to accelerate investment in reliable, accessible, and regionally distributed fast-charging infrastructure to support EV adoption across British Columbia.
The Association is also calling for greater certainty regarding British Columbia’s revised Zero-Emission Vehicle (ZEV) mandate framework. While government has announced its intention to revise the program, new regulations have yet to be finalized, leaving dealers, manufacturers, and consumers operating under existing requirements and facing uncertainty about future compliance obligations.
Providing clarity around the province’s long-term ZEV strategy, while ensuring the necessary charging infrastructure is in place, will help support a more successful and affordable transition to electric vehicles.
