OTTAWA, ON: The federal retreat from a ban on new gas and diesel vehicles is a win for taxpayers, but the Canadian Taxpayers Federation will continue to fight for affordability as the new federal policy is rolling out billions in corporate welfare and subsidies as well as expensive new regulations.

“Ordinary Canadians forced the federal government to make a major retreat and admit Canada simply can’t afford to ban the sale of all new gas and diesel vehicles by 2035,” said Franco Terrazzano, CTF Federal Director. “Canadians forced Ottawa to retreat, but the federal government is replacing the electric vehicle mandate with a package of unaffordable policies.

“Taxpayers can’t afford to pay for billions in corporate welfare and subsides.”

Today the federal government announced it is ending its ban on the sale of new gas and diesel vehicles by 2035 through its electric vehicle mandate.

Most Canadians opposed the government’s ban on the sale of new gas and diesel vehicles, according to a Leger poll commissioned by the CTF.

However, the government also announced $3 billion in subsidies to the auto manufacturing industry. The government also reintroduced subsidies for electric vehicle purchases, which will cost taxpayers $2.3 billion.

The federal government has already put taxpayers on the hook for up to $31.4 billion for subsidies for battery factories and the electric vehicle supply chain, according to the Parliamentary Budget Officer.

The federal debt is now $1.3 trillion and going up by about $80 billion this year. Interest charges on the federal debt are now higher than federal health-care transfers or the total amount Canadians pay through the GST.

The federal government also announced it is imposing new regulations that push automakers to reach “75 per cent EV sales by 2035 and 90 per cent EV sales by 2040.”

“Canadians forced Ottawa to retreat from its wildly unrealistic plan to ban all new gas and diesel vehicle sales in less than a decade, but now Prime Minister Mark Carney is using less transparent subsidies and regulations to impose a plan that’s almost as unrealistic,” Terrazzano said. “From runaway borrowing to hidden carbon taxes and now electric vehicle subsides and regulations, the prime minister needs to stop trying to hide bad policies and end them entirely to make life more affordable for taxpayers.”