Vehicle Efficiency Incentive (VEI) is introduced in 2007 Canadian federal government budget, aimed at promoting fuel efficient vehicle. VEI took effect on 2007-3-20, included a performance-based rebate program offering up to $2,000 for the purchase of a new fuel-efficient vehicle, a Neutral treatment of a broad range of vehicles with average fuel efficiency that are widely purchased by Canadians, and a new Green Levy on fuel-inefficient vehicles. Image File history File links Circle-question-red. ...
The rebate program initially offers $1000 for new automobiles with a combined fuel consumption rating of 6.5 L/100 km or less and minivans, sport utility vehicles (SUVs) and other light trucks with fuel consumption of 8.3 L/100 km or less, calculated based on a combined 55 per cent city and 45 per cent highway rating. An addition $500 is offered for each half litre per 100 km improvement in the combined fuel-efficiency rating of the vehicle below these thresholds, for the maximum total of $2000.
Green Levy is charged for new passenger vehicles (excluding trucks) with fuel-efficiency ratings of 13.0 L/100 km or more, the incentive structure will include a new Green Levy on these vehicles, payable by the manufacturer or importer when vehicles are delivered into the Canadian market. The fuel-efficiency rating is calculated based on the same criteria as the rebate program. Green Levy will start at $1,000 for passenger vehicles with combined fuel-efficiency ratings of at least 13.0 L/100 km but less than 14.0 L/100 km, and increase in $1,000 increments for each full litre per 100 km increase in the combined fuel-efficiency rating above the 13.0 L/100 km floor, to a maximum of $4,000, for vehicles with ratings of 16.0 L/100 km or more.
In addition to the incentives and levies, Budget 2007 will provide $6 million over the next two years for a seven-fold increase in current annual federal support delivered through Environment Canada for scrappage programs, and $30 million over the next two years for incentives to be designed by Environment Canada and Transport Canada in consultation with stakeholders that will remove older, high-emitting vehicles from Canadian roads.
- Budget 2007 Chapter 3 A Better Canada
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