Ontario Freezing Some Driver and Vehicle Fees

Ontario Freezing Some Driver and Vehicle Fees
Making life more affordable for drivers

TORONTO - The Government of Ontario is protecting what matters most by implementing a five-year plan that will bring stability to driver, vehicle and commercial fee increases over the next five years. 

Key driver, vehicle and commercial fees will not increase until July 1, 2020. This is the third round of driver and vehicle fee increases that have been cancelled by the government. A modest two per cent increase to remaining fees will take effect on July 12, 2019.

"Our government is implementing minimal and consistent fee increases that provide certainty for businesses and keeps more money in taxpayer pockets," said Minister of Transportation Caroline Mulroney. "We are committed to reducing burdens on Ontarians while maintaining fiscal responsibility and making sure our roads remain safe."

Fees that will not increase this year include: driver's licence renewals, driver's licence applications, and vehicle plate, permit and validation fees.

"Freezing most fees is a positive move by the Ford government that will help save Ontarians money. Moving forward, we would be pleased to work with the government to continue to find further efficiencies," said Aaron Wudrick, Federal Director, Canadian Taxpayers Federation.

"CAA is pleased the Ministry of Transportation has maintained licence and validation fees for both passenger and commercial vehicles at current levels for the coming year. This decision will result in a benefit for millions of drivers across Ontario," said Elliott Silverstein, Manager, Government Relations, CAA South Central Ontario.

"In 2014 the commercial trucking industry faced high double digit increases for the purchase of commercial license plate and permit fees —- up to 70 per cent for commercial plates. At the time, Ontario Trucking Association (OTA) asked the Government of Ontario to take a more measured and planned approach to required plate and fee increases —- including the use of the consumer price index on a scheduled basis. Today's announcement by the Government of Ontario, increasing fees by two per cent in 2019 followed by both fee and plate increases of two per cent till 2023, follows this business like and planned recommended approach by the OTA," said Stephen Laskowski, President, OTA.

Ontario has been working to responsibly reduce the deficit, cut red tape and keep the province on a path of fiscal responsibility. Based on recommendations from the line by line audit conducted by Ernst & Young, increases to some driver, vehicle and commercial fees over five years will allow the government to remain fiscally responsible while minimizing the financial impact for businesses and Ontario drivers.

Revenues from fees help support improvements to Ontario's roads, bridges and highways and ensure they continue to be among the safest in North America.