Carbon levy revenue returned to Islanders

Government has committed to returning all revenue from the carbon levy on gas and diesel directly back to Islanders. 

“Our made-in-PEI plan has always been to reach our climate change targets without costing Islanders,” said Finance Minister Heath MacDonald. “We will offset the increase at the pumps by returning revenue to Islanders through incentives encouraging things like transit use and the purchase of electric vehicles and hybrids, and reducing the cost of registering vehicles and your drivers license. It is those operating vehicles that will feel the impact of the carbon levy the most and we are returning the levy proceeds to these people.” 

New incentives include:

  • Reduced transit fees - effective January 1, 2019, government will provide an annual grant to T3 Transit to reduce month passes, tickets and coin fares by 10%.
  • Free driver’s licenses - effective January 1, 2019,  Islanders will receive new and renewed driver’s licenses at no charge. License renewal will be required every five years instead of every three. 
  • Free vehicle registration for EVs and PHEVs - as of January 1, 2019, electric vehicles and plug-in hybrid vehicles will be registered at no charge.
  • Reduced hybrid vehicle registration - as of January 1, 2019, non-plug in hybrid vehicle owners will pay 50 per cent less to register their vehicles.
  • Reduced vehicle registration - as of April 1, 2019, Islanders will pay 20 per cent less to register their vehicles (now rescheduled to January 1, 2019).

"Islanders are already saving money while turning to more environmentally friendly forms of energy through energy efficiency initiatives," added Transportation, Infrastructure and Energy Minister Paula Biggar. "We are pleased that these new incentives will offer even more opportunities."

Media Contact:
Samantha Hughes
(902) 368 - 5501


General Inquiries

Department of Finance
2nd Floor South, Shaw Building
95 Rochford Street
P.O. Box 2000
Charlottetown, PE, C1A 7N8

Phone: (902) 368-4040
Fax: (902) 368-6575