As of September 1, Ontario’s licence plate sticker renewal fee will jump to $120 from its current price of $108, close to double what drivers paid in 2011 for the stickers.
Most Canadian provinces have kept plate renewal costs steady, or have only made very small increases, reports the Globe and Mail.
But the Ontario provincial government says more funds from vehicle sticker renewals – which were just $74 in 2011 – are needed to cover rising costs associated with transportation and infrastructure.
“Many fees, including those for driver and vehicle licences, do not allow the government to fully recover the cost of delivering services or products,” and are operated at a net loss, said Bob Nichols, Ontario Ministry of Transportation (MTO) spokesperson.
“Gradual fee increases for driver and vehicle services are critical to help maintain the safe highway infrastructure that people and businesses rely on.”
The funds collected from the fees are channeled into a government general revenue fund, and only a portion of that money goes to building and maintaining roads and transportation infrastructure, as well as covering the costs associated with driver and vehicle licencing.
(Government of Ontario via the Globe and Mail)