Construction of Volkswagen battery plant to bring 'marginal' economic benefit: budget watchdog
. Ottawa agreed to provide up to $13.2 billion in production subsidies to the company over the next decade.
Giroux said in a news conference that the PBO did not look at the broader economic affects of the plant in comparison to the production subsides. To do that, he said, would require confidential business information from Volkswagen that the PBO is not allowed to make public. Giroux said the federal government did provide the PBO with details of the deal that aren't yet public.
While those numbers are in line with the costs the federal government has acknowledged, the PBO report says there's another cost — tax adjustment dollars the government will have to give to Volkswagen, at a price tag of $2.8 billion, the PBO said. "[The tax adjustments] are needed to achieve an after-tax equivalency to support offered under the U.S. Inflation Reduction Act , as per the government's stated intention," the PBO news release said.Giroux said the plant's construction is unlikely to bring a significant economic boost.
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