Ontario is scrapping vehicle licence plate renewal fees

The requirement for drivers to have a licence plate sticker effective March 13.

Speaking at a news conference on Tuesday morning in Richmond Hill, Premier Doug Ford said the government will also be introducing red tape legislation that will allow Ontario to issue refunds to people who have renewed their licence plate stickers since March 2020.

This will apply to all passenger vehicles, light duty trucks, motorcycles and mopeds. Currently, renewal fees stand at $120 a year for passenger vehicles in southern Ontario, and $60 in the North.

According to Ford, the move signifies $1 billion going back into the economy, and will still benefit the province because it will create a broader tax base.

More than 7.5 million vehicle owners will benefit from the renewal savings, Ford said. This includes those that are owned by businesses. However, the cuts will cost the province over $1 billion a year in lost revenue.

He says with the cost of living rising, his government is finding ways to reduce the burden "on the hard-working folks who need a break."

"These savings add up. That means a little more money in your pocket to help with groceries or pay bills," Ford said.

News comes as provincial election nears

The premier said he doesn't want to raise taxes, but Treasury Board president Prabmeet Sarkaria also said there will be no cuts to services to make up for the loss of revenue.

"I think like any other program that the government puts forward, we'll examine all fiscal implications of the program, as we have been internally," Sarkaria said after today's question period.

While NDP Leader Andrea Horwath said she was not opposed to the elimination of the renewal fees, Liberal House Leader John Fraser said waiving the fees isn't enough to address affordability.

Green party leader Mike Schreiner said the announcement is just an election gimmick — the province heads to the polls in June — and the other opposition leaders are "playing footsie" with it.

"That is a billion-dollar election boondoggle that means less money for health care, less money for education, less money for affordable housing," he said.

The premier sounded less certain, however, about another affordability promise, saying he will "look into" cutting gas prices.

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