(Quebec) Quebec City wants to triple the registration tax paid by motorists in the capital in order to better finance public transport, in a context where congestion is getting worse.
“This is not an announcement we are making with a light heart. We are not happy to announce this,” said Quebec City Mayor Bruno Marchand on Wednesday. The announcement took place at the Intelligent Mobility Management Centre, in front of dozens of screens that document live traffic congestion on the capital’s arteries.
The vehicle registration tax in Quebec will jump by $60 starting in January 2025, from $30 to $90. Remember that in Greater Montreal, this tax will increase from $59 to $150 per car starting in January 2025.
These sums collected by the Société de l’assurance automobile du Québec (SAAQ) on behalf of the City will be used to finance the services of the Réseau de transport de la capitale (RTC), which is forecasting a shortfall of 40 million next year.
The city hopes to raise $18.4 million with this new measure. The mayor of Quebec assures that the kitty will not only be used to balance the RTC budget, but also to improve its services.
Several high-frequency lines will be added with these funds, notably towards Val-Bélair and L’Ancienne-Lorette. The àVélo service will also be improved in the outskirts, promises the RTC. Motorists who will have to pay this additional $60 will receive a $30 credit to use at the RTC, the equivalent of eight bus tickets.
According to Bruno Marchand, congestion will only get worse in Quebec City if services are not improved. “If we do nothing, the status quo is harmful. Humanly, economically, environmentally speaking,” said the mayor.
According to him, tripling this tax was the only solution to improve mobility. This decision comes one year before the next municipal elections. Mayor Marchand knows that he will bear the weight of this decision.
“There is not one elected official who was happy about this, not one elected official from my party who thinks it is a good day today,” he said.
The $90 tax will also be indexed to the consumer price index starting in 2026. The current $30 tax was introduced in 1992, but was never indexed.
With a $40 million gap in 2025, and additional revenue of $18.4 million thanks to this tax increase, how will the RTC be able to balance its budget? Mayor Marchand assures that the transport company will have to optimize its expenses. “There were cuts of $11 million last year,” he specifies.
The mayor also hopes that talks with the Quebec government will make it possible to obtain additional funding.