Tuesday, August 13, 2024

Tesla used a technicality to get the Cybertruck off the luxury vehicle tax list of Canada, gross vehicle weight. That saves buyers 10,000 dollars

On a base CA$165,990 Cyberbeast price, however, the Canadian government also charges CA$13,773 luxury tax, or more than $10,000 USD. This luxury tax was introduced back in 2021 for passenger vehicles, boats or planes that cost more than CA$100,000, and is either 10% on the whole tag, or 20% on the difference above CA$100,000, whichever comes lower.

Needless to say, all of these levies can make the Cybertruck up to 50% more expensive than in the US, so Tesla promised that it will do something. Over the weekend, the Cybertruck Vehicle Program Manager tweeted that Tesla is "working on fixing this," referring to the luxury vehicle tax.

It now seems to have found a solution, too. Besides its price range, there are no less than six criteria that a passenger vehicle sale has to conform to in order to be charged with a luxury tax. The Cybertruck ticks all those boxes, but misses one by a tad, the gross vehicle weight.

Tesla found the loophole, and asked the Canadian authorities to exempt the Cybertruck from the luxury vehicle tax based on its weight. Thanks to its stainless steel body and large 123 kWh battery, the total GWVR of even a Cybertruck with all-season tires is 8,883 pounds, which is 332 pounds more than the government's threshold for the luxury passenger vehicle tax.

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