Ontario golf-cart makers face $500,000 retroactive EV tax bills from Canada
Two Ontario firms that import Chinese-made golf carts have been hit with large retroactive tax assessments after the government classified the carts as electric vehicles.
The Canada Border Services Agency has issued retroactive tax assessments to at least two Ontario businesses that import motorized golf carts from China, treating the vehicles as electric cars. Axglo Inc., based in Markham and overseen by Hanson Xie, faces a bill of about $500,000, while Pickering-based JPSMGolf was previously billed $178,000. Both firms argue the carts, designed only to carry golf bags, should not fall under the automotive EV classification that triggered a 100% surcharge during a 17-month trade dispute.
The companies must either settle the amount or provide a bond while they pursue an appeal, but interest charges are already accruing. The tariff stemmed from a temporary policy aimed at protecting Canada’s auto sector and aligning with U.S. measures, which ended after a deal allowing limited Chinese EV imports at a reduced rate. Smaller manufacturers of mobility scooters and similar battery-powered devices fear similar treatment.
Why it matters
The rulings could force small importers to shut down, highlighting how trade policies impact niche businesses.
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