FOR IMMEDIATE RELEASE

November 5, 2025

Matt MacFarlane tables bill to remove provincial tax on used car sales

Charlottetown, PE – Today Matt MacFarlane, Leader of the Green Party of PEI, tabled a bill in the legislature to remove the provincial tax from used vehicle sales. The proposed bill would remove the 10% provincial sales tax from used vehicles when purchased from a dealership and would remove the entire 15% provincial sales tax from the private sale of used vehicles.

“It’s time to give Islanders a break. For most Islanders, having a car isn’t a luxury, it’s a necessity. But the cost of vehicles, just like everything else these days, is going up,” said MacFarlane. “When so many Islanders are struggling with the cost of living, every dollar matters.”

Currently used vehicles purchased from a dealership are subject to 10% provincial tax and 5% federal tax. Private sales of used vehicles are not subject to federal tax, but the provincial government increases their provincial tax rate in this situation to 15%. If this bill is passed, Islanders would no longer have to pay any tax on private sales of used vehicles and only the 5% federal tax portion on dealership sales of used vehicles.

“This is a simple change that keeps more money in the pockets of Islanders, where it belongs,” said MacFarlane. “It’s not fair Islanders are expected to pay tax on a used vehicle when that tax was already paid when the vehicle was first purchased.”

MacFarlane hopes to receive support from all MLAs from all parties on this simple, yet impactful change.

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For media inquiries, please contact:
Katie Rankin
Chief of Staff
Office of the Third Party
Tel: (902) 213-6378
Email: kerankin@assembly.pe.ca