The Ford government said it would not raise driver, vehicle, and commercial fees until July 1, 2020.
Earlier this month, a proposal to raise the fees was posted to a regulatory registry for public comment. At the time, then-Transportation Minister Jeff Yurek said no decision had been made. He justified the increase saying it was necessary to maintain service levels without raising taxes.
While a two per cent increase to other fees will take effect on July 12, 2019, it will not include driver's license renewals, driver's license applications, vehicle plates, permits, and validations.
"Our government is implementing minimal and consistent fee increases that provide certainty for businesses and keeps more money in taxpayer pockets," said the new Transportation Minister Caroline Mulroney who was appointed to the post in a cabinet shuffle on June 20.
The Canadian Taxpayers Federation said it supports the decision, and the Canadian Automobile Association said it would benefit millions of drivers across Ontario.
"CAA is pleased the Ministry of Transportation has maintained licence and validation fees for both passenger and commercial vehicles at current levels for the current year," said CAA South Central Ontario Manager of Government Relations, Elliott Silverstein.
The revenues raised by the fee increases will support road improvements across the province.