PEI·NewA proposed bill that would have eliminated the provincial sales tax on used vehicles failed to pass in the legislative assembly Wednesday after P.E.I.’s finance minister questioned the legality of making the change. Matt MacFarlane says he will revisit the bill for the next legislative sittingRyan McKellop · CBC News · Posted: Nov 19, 2025 5:45 PM EST | Last Updated: 1 hour agoListen to this articleEstimated 3 minutesThe audio version of this article is generated by text-to-speech, a technology based on artificial intelligence.Matt MacFarlane, leader of P.E.I.’s Green Party, says he is disappointed in government after his bill to eliminate the sales tax on used cars did not pass on Wednesday. (Rick Gibbs/CBC)A proposed bill that would have eliminated the provincial sales tax on used vehicles failed to pass in the legislative assembly Wednesday after P.E.I.’s finance minister questioned the legality of making the change. That means Islanders will still have to pay a 15 per cent sales tax when they purchase a used vehicle, either through a dealership or a private sale. Green Party Leader Matt MacFarlane said he tabled the bill in hopes of putting more money back in people’s pockets. He said after a vehicle is sold the first time, it shouldn’t be subject to taxes again. “The cost of living is becoming unsustainable for many,” he said. “For many Islanders, owning a car on P.E.I. is not a luxury, especially for rural Islanders — it is a necessity.”P.E.I. Finance Minister Jill Burridge, however, questioned whether the province has the authority to make such a change to P.E.I.’s Retail Sales Act. When used cars are purchased at Island dealerships, the sales tax is split — 10 per cent for the province and five per cent for the federal government under P.E.I.’s harmonized sales tax. The province takes the full 15 per cent on private sales.Burridge pointed out that Alberta eliminated its used-vehicle tax, but noted that province does not have a blended provincial and federal sales tax like P.E.I. does.Jill Burridge, P.E.I.’s minister of finance, questioned the legality of making the change proposed in a Green Party bill that would have eliminate the provincial sales tax on used vehicle purchases. (Legislative Assembly of P.E.I.)”I think we stand aligned [on] tax relief for Islanders, it’s just how it’s delivered,” Burridge said in the legislature during debate over the bill. “We don’t have jurisdiction to override the federal Excise Tax Act, which is the one that would govern in this case.” “I’m disappointed with the vote, disappointed with the debate and I’m disappointed for Islanders.- Matt MacFarlane, Green Party leaderThe Green Party caucus said it received information from the province’s legislative counsel that a clause exists in P.E.I.’s tax regulations that would have allowed for the exemption MacFarlane was proposing.Outside the legislature, MacFarlane told reporters it was unfortunate that the finance minister chose to play politics over giving Islanders a tax break. “I’m disappointed with the vote, disappointed with the debate and I’m disappointed for Islanders,” he said.”There was a path where, if government had have chosen it, could have… been very valuable for so many Islanders, to the tune of hundreds of thousands in saved tax. But government choose not to take me up on that.” ABOUT THE AUTHORRyan McKellop is a graduate of the Holland College journalism program and is working as an Associate Producer and Web Writer. Got a story idea? Email ryan.mckellop@cbc.caWith files from Stacey Janzer
P.E.I. Green leader ‘disappointed’ after bill to ditch sales tax on used cars fails to pass
