The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamian motorists face having to pre-pay for their vehicle’s annual inspection, and fines if they fail to renew its licence and registration on time, as part of the Government’s drive to boost road safety and compliance with a “modernised” traffic regime.

Little-noticed reforms to the Road Traffic Act, which have been tabled in the House of Assembly alongside the 2026-2027 Budget, introduce several subtle but important changes to the vehicle inspection and licensing regime that will impact thousands of Bahamians as early as July this year provided Parliament passes them into law.

The Road Traffic (Amendment) Bill 2026’s fifth clause is designed to amend section 32 in the existing Act by requiring vehicle owners to pay the annual inspection fee to the Road Traffic Department “before the inspection is conducted”. This will mark a major cultural shift, as both Bahamians and residents have grown accustomed to paying this fee after the inspection - and only if their auto is deemed roadworthy enough to pass,

However, the proposed Road Traffic Act change stipulates that the inspection fee “shall be payable whether or not a certificate of fitness is issued” - meaning that no refund is available for motorists whose vehicles fail to pass. And, for those owners whose autos are deemed not roadworthy, they will have to pay the inspection fee again whenever these deficiencies are fixed and they present the vehicle for a fresh examination by Road Traffic Department officials.

And, apart from paying inspection fees in advance, the Bill also inserts new sections into the Road Traffic Act that will impose a “penalty” on motorists who fail to bring their vehicle forward for inspection, and the annual renewal of its licence and registration, before the latter expires. In other words, if a vehicle’s licence and registration expires in January, but it is not presented to the Road Traffic Department until March that year, a fine equal to the annual registration fee will be triggered.

The only way for Bahamian motorists who find themselves in this predicament to escape the fine, according to the Bill, is for an “approved mechanic” to verify that their vehicle had broken down during this period or the owners supply evidence of “any other reasonable cause” why it was not drive-able. The Bill, though, does not define who is an “approved mechanic”.

And, in a separate amendment, the Bill tabled in Parliament creates a new section 30A in the Road Traffic Act that mandates importers of motor vehicles into The Bahamas must obtain a certificate of title for every auto before they are released by Customs.

No vehicle can be registered, licensed or driven on the road unless such title certificate is first acquired, and any violators of this proposed legal requirement face a fine of up to $1,000, imprisonment of up to six months or both. The Bill also seemingly does not distinguish between bulk vehicle importers, such as new and used car dealers, and Bahamian residents and citizens importing just one auto for their personal use.

Leon Lundy, minister of transport, in written replies to Tribune Business inquiries justified the changes as part of efforts to improve safety and compliance with the road traffic regime, plus boost administrative efficiency and “modernise” the vehicle licensing, registration and inspection process.

He explained that requiring vehicle inspection fees to be paid in advance, and making them non-refundable, ensures the Government is able to recover the costs associated with providing this service while also incentivising Bahamians to keep their autos sufficiently roadworthy to enable them to pass first time.

As for the penalty for not renewing vehicle licences prior to their expiration, Mr Lundy said too many owners continue to drive around in non-compliant cars and delay inspections - something that he argued “increases the risk of unsafe vehicles on our roads”. The fine, he added, will be a “meaningful deterrent” given that it will be the equivalent of the annual licence fee - a levy that ranges from $160 for small cars to $760 for the largest trucks.

The South Andros and Mangrove Cay MP said mandating that vehicle importers obtain a certificate of title before Customs clearance is approved will help to create “a more secure and reliable vehicle ownership system within The Bahamas” and “reduce opportunities for fraud”.

“The proposed amendments are designed to modernise the vehicle licensing and registration framework, improve compliance, strengthen road safety oversight and create greater efficiency within the administration of road traffic services,” Mr Lundy told Tribune Business. The Road Traffic Department is forecast to collect $48.39m in vehicle licence fees in the upcoming 2026-2027 Budget year, which is a $2m drop compared to the $50.39m prediction for the present 2025-2026 fiscal period.

However, these fees are forecast to rise by $4m in the 2027-2028 Budget cycle to hit $52.39m, and then grow by a further $3m to $55.39m in 2028-2029 - marking a $7m jump over a three-year period.

Addressing the inspection fee amendment, Mr Lundy said the changes are designed to “ensure the Government recovers the actual cost associated with providing inspection services”.

He added: “The inspection process requires the commitment of government resources regardless of whether a vehicle ultimately passes or fails inspection. Inspectors must still conduct the assessment, utilise equipment, process documentation and allocate administrative time to each vehicle presented.

“Making the inspection fee payable in advance and non-refundable ensures that the cost of providing the inspection service is recovered and aligns with the principle that the fee is for the inspection itself, rather than for a successful outcome….

“Making the inspection fee payable in advance and non-refundable ensures that the cost of providing the inspection service is recovered and aligns with the principle that the fee is for the inspection itself, rather than for a successful outcome.”

Mr Lundy added that the proposed legal change, if passed, will “improve operational efficiency by reducing payment processing delays” and “encourage vehicle owners to ensure their vehicles are roadworthy before presenting them for inspection”. The latter aspect, he suggested, will also reduce repeat inspections caused by vehicle defects.

Turning to the licence and registration renewal penalties, the minister said: “The Government’s primary objective is to improve compliance with vehicle inspection and licensing requirements.

“Currently, some vehicle owners continue operating vehicles after licences have expired or delay inspections for extended periods. This creates challenges for enforcement agencies and increases the risk of unsafe vehicles remaining on public roads. The penalty, equivalent to the annual registration fee, is intended to serve as a meaningful deterrent against non-compliance while encouraging timely renewal.”

Mr Lundy argued the tightened enforcement will “prevent leakage of revenue where customers skip years and then transfer ownership”. This, he added, will lessen “the administrative effort associated with tracking and pursuing overdue renewals” and create “greater fairness for motorists who consistently comply with legal requirements”.

“From a revenue standpoint, the measure is expected to reduce leakage associated with late renewals and encourage timely payment of licensing fees,” the minister said. “From an enforcement perspective, it strengthens the regulatory framework by providing a clear consequence for failing to maintain a valid inspection and registration status.”

And, with the certificate of title requirement, Mr Lundy said the Government and road traffic authorities are aiming to “establish a clear chain of ownership from the moment a vehicle enters The Bahamas”, improve “the integrity and accuracy of the national vehicle registry” and “reduce opportunities for fraud, ownership disputes and unauthorised transfers”.

This, he added, will “strengthen the ability of law enforcement and regulatory agencies to trace vehicle ownership” plus “improve confidence for financial institutions, insurers and consumers by providing a secure ownership record”. And it will also pave the way for further digital vehicle registration and title management initiatives.

“This amendment forms part of a broader effort to establish a more secure and reliable vehicle ownership system within The Bahamas,” Mr Lundy said. “Requiring a certificate of title before a vehicle is released from Customs ensures that ownership information is captured and verified at the earliest point of entry into the country.

“Administratively, this approach eliminates the need to retroactively establish ownership records after vehicles have already entered circulation. It ensures that all vehicles entering the jurisdiction are properly documented before they are registered and licensed for use on public roads.

“Ultimately, the measure supports the Government’s long-term objective of creating a modern, transparent and efficient vehicle registration system that enhances public confidence, strengthens regulatory oversight and improves service delivery.”

The Road Traffic (Amendment) Bill 2026 also introduces a $125 vehicle licensing fee for electric autos. This is lower than all gasoline and diesel-powered rivals, which face having to pay $160 if they weigh up to 3,000 pounds; $215 if they weigh between 3,000 and 5,000 pounds; $610 if they weigh between 5,000 and 15,000 pounds; and $760 if over 15,000 pounds.