Canadian government decides to reimburse car dealers for electric vehicle subsidies

The Canadian government has decided to reimburse car dealers for electric vehicle subsidies. In fact, car dealers had given customers rebates according to the subsidy before the federal government abruptly ended the subsidy program in January.

Nearly six months after the program was shut down, Transport Canada is reopening its claims system so that dealerships can refund the rebates given to customers. Ottawa shut down the program after American electric car company Tesla filed millions of dollars in subsidy claims in a short period of time.

The government said the funding allocated for the scheme had run out. So far, the government has not confirmed when it will fulfill its promise to restart a new program to encourage existing car buyers to buy electric vehicles.