The Ontario government is scrapping licence plate renewal fees and corresponding stickers for passenger vehicles, light duty trucks, motorcycles and mopeds.

The announcement was made in Richmond Hill alongside Minister of Transportation Caroline Mulroney, Minister of Government and Consumer Services Ross Romano and Associate Minister of Small Business and Red Tape Reduction Nina Tangri.

Speaking at a news conference on Tuesday morning, Ontario Premier Doug Ford said the government will issue refunds to Ontarians who have renewed their licence plate stickers. More than 7.5 million residents will receive a refund, officials said.

To receive a refund, drivers will have to ensure their address is up to date on the provincial website and that they've paid any outstanding traffic tickets by March 7.

Vehicle owners can expect to receive a cheque in the mail starting at the end of March and throughout the month of April, the government says.

“We know the rising cost of living has made many things more expensive and can make it harder for families to make ends meet,” Ford said.

“After two years of the pandemic. People don't need any more hurdles in the way of getting back on their feet and back to normal.”

The move to eliminate licence plate stickers is a strategy ahead of the June provincial election, sources said. Ford's team is looking to gain support from voters in the suburbs, where the majority of people own and drive a vehicle.

Sources told CTV News Toronto last week that eliminating licence plate stickers would cost the government $1 billion per year in revenue.

"It's everyone's money. It's not the government's money," Ford said in response to inquiries on the cost of the program.

"We're just putting that in back into your pocket and it's about affordability. People have been hurt so much over this pandemic and that's a billion dollars going back into the economy," he said.

The government has allowed people to use expired licence plate stickers since March 2020 to avoid people gathering in Service Ontario locations.

There are more than eight million vehicles currently registered in Ontario.

-With files from CTV News Toronto’s Sean Davidson and Colin D'Mello.