Hybrid vehicles rebate doubled in Ottawa and Ontario

Ontario is doubling the sales-tax rebate it offers to consumers who buy hybrid vehicles, which are more fuel efficient than their counterparts.

The government currently refunds the eight per cent retail sales tax paid on hybrid electric vehicles to a maximum of $1,000.

In its 2006 budget yesterday, the province announced it would boost the maximum sales tax rebate to $2,000.

The new policy applies to vehicles delivered to consumers beginning Friday.

Dennis DesRosiers, head of DesRosiers Automotive Consultants, said it's a good move, but noted "it's hardly a budget-breaker."

"Ontarians last year bought a grand total of about 1,000 hybrid vehicles. So, this is going to cost the Ontario treasury about $1 million."

The Liberals are proposing to introduce a sunset date of March 31, 2012, for the tax rebate. At that point, it intends to consult with stakeholders to see how well the program is working.

"Hybrid electric vehicles promise to be an emerging growth area for the future of the automobile sector, helping to reduce greenhouse gases," the budget states.

CanadaEast