If you haven’t transferred your vehicle ownership, now is the right time to do it. Despite rules in place for decades, many still haven’t complied. But that’s about to change. After June this year, the Bhutan Construction and Transport Authority will levy stricter penalties. According to the Road Safety and Transport regulation, the seller will have to transfer ownership to the buyer within a period of 15 days.
Incomplete vehicle ownership transfers have been a long-standing issue.
Many vehicles in the country have changed hands over the years without officially transferring ownership.
As a result, the registered owner in the system may not always be the actual person using the vehicle.
According to the Bhutan Construction and Transport Authority, compliance remained low despite awareness efforts, mainly because strict penalties were not enforced.
Applicants can now apply for ownership transfer online.
In cases where sale deeds are unavailable, individuals can submit a legally binding letter of undertaking along with supporting documents.
Moreover, the tax will be calculated on the vehicle’s depreciated value, meaning the ownership transfer tax will be calculated based on the vehicle’s current reduced value, not its original price or market price.
Previously, the tax was calculated based on whichever was higher between the sale price and the vehicle’s depreciated value, which discouraged many people from transferring ownership.
Officials said having the vehicle registered under the rightful owner ensures that all liabilities, such as traffic violations, financial encumbrances, or accidents, are correctly attributed.
After June, a penalty of Nu 100 per day will be levied for failing to transfer ownership.
Additionally, during routine and random road inspections, BCTA and Police will check the ownership details against the Registration Certificate (RC).
If the vehicle is being operated by a person whose name does not match the registration, the driver will be fined.
In cases where the vehicle belongs to a parent, sibling, or friend, officials will verify the claim immediately during the inspection.
However, it is not known how many vehicle owners have transferred the ownerships so far.
As of now, there are approximately 125,000 active vehicles registered in the country.
Sonam Yuden
