Green bill would eliminate the tax on used-car sales on P.E.I.

The P.E.I. Greens have introduced a bill that would scrap the tax on used-vehicle sales on Prince Edward Island.

Party Leader Matthew MacFarlane called Bill 104 an "affordability bill" that looks to make buying and selling cars easier in the province.

As of now, used-car sales are hit with a 15 per cent retail sales tax, which is usually based on the declared purchase price.

"The bottom line is you need a car to to get around, and not everyone can go out and afford a brand new car," he said.

"Young drivers getting into a car for the first time, newcomers to P.E.I., people on lower or fixed incomes, these are all segments of our population who could really benefit by having a break. We're talking hundreds or thousands of dollars in most cases that could be kept in Islanders' pockets."

MacFarlane says the idea for the bill came up after conversations with Islanders, auto sales workers and the Green caucus.

He said he's heard stories about Islanders who've put off buying cars because of the heavy tax bill that waits for them on the other side of the purchase.

Another common practice, MacFarlane said, is one where buyers and sellers agree to a price, but lower the price on paper to reduce the total tax.

"This bill would avoid even having those conversations, and it could allow for people to get into a car and still keep money in their pockets for food, for heat and for investment back into the local economy," he said.

"I know government's perspective on this will be 'Well, we're losing out on the tax revenue' … government shouldn't lose sight of the fact that this is money that is still going to be left in the economy."

MacFarlane's bill has not been debated on the floor. He said he hopes other MLAs will see it as a way that could help people

"Leave this money in Islanders' pockets where it belongs," he said. "It's time for government to really recognize how hard it is right now for Islanders."