The province has recently issued this bulletin to clarify the recently announced point-of-sale social service tax reduction applicable to fuel efficient vehicles. The reduction of provincial tax will apply to new gasoline, diesel-powered or flex-fuel vehicles that meet the fuel efficiency requirements of the provincial program and qualify under the federal rebate program. This program will not apply to alternative fuel vehicles, such as hybrid electric vehicles.
“Notice to Motor Vehicle Dealers: PST Reduction for Qualifying Fuel Efficient Vehicles”