April 11, 2019
Transport Canada Hikes Fees
On April 1, Transport Canada (TC) began adjusting the fees it charges by taking into account the Consumer Price Index (CPI). Up to March 31, 2020, TC will apply a 2.2 percent increase to most of its regulatory fees. Going forward, each year on April 1 fees will be again adjusted according to the most recent CPI.
Those fees that will not be subject to annual increases, which TC classifies as ‘Low-material Fees’, are determined using certain criteria. For example, flat fees of $50 or less, regardless of the amount of revenue TC collects per year, will not be subject to annual CPI increases. Additionally, flat fees of $51 to $150, with an annual revenue of less than $500,000, will be exempt. So will fees specified in regulations, such as photocopying and parking, and fees that TC will list in an appendix to yet-to-be-released Low Materiality Regulations.
All other fees that TC levies will be subject to inflation-adjusting.
In explaining their Fee Modernization Initiative, TC cites the fact that they have not increased fees for over 20 years. TC has announced that it also intends to begin charging for services that were, up until recently, delivered free of charge.
TC invites stakeholders to learn more about the initiative, and to provide feedback, by accessing their website Let’s Talk Transportation.