In a bid to manage Thimphu’s growing traffic woes, the government is set to introduce higher vehicle registration fees and toll charges for vehicles entering the capital.
These measures are part of the government’s strategy to control vehicle numbers and curb traffic congestion in Thimphu.
The new fee structure will impact vehicles registered in Thimphu, with incremental increases proposed for existing vehicles over the coming years.
This policy change follows the lifting of the two-year vehicle import moratorium on August 18 following improvement in the macro-economic situation of the country and positive growth outlook.
The finance ministry’s directive highlights the urgent need to address the challenges posed by the rapid growth in vehicle numbers, including traffic congestion, pollution, and strain on infrastructure.
The Bhutan Construction and Transport Authority (BCTA) has been tasked with developing a differentiated registration system specifically for Thimphu Thromde to address these concerns.
“This system will be distinct from the registration process in other parts of the country and aims to regulate the number of vehicles in the city more effectively. By managing the influx of vehicles, we seek to minimise the negative externalities and ensure that Thimphu city remains a vibrant and liveable city for all residents,” the ministry’s notification stated.
A BCTA official said that the authority is currently drafting the proposal for the new registration system, with plans to submit it to the government by December this year.
This initiative will introduce a distinct registration process for Thimphu. Including the Thimphu region, vehicles are registered in four other regions—Phuentsholing, Gelephu, Samdrupjongkhar, and Mongar.
The new fee structure will include annual incremental increases for older vehicles registered in Thimphu.
Under the existing Road Safety and Transport Regulations 2021, registration fees vary by vehicle type. Heavy vehicles weighing 18.5 tonnes incur a fee of Nu 17,000, inclusive of Nu 6,000 fees and charges,and Nu 7,000 motor vehicle tax.
For medium vehicles weighing more than 3 tonnes but not exceeding 10 tonnes, the registration fee is Nu 8,800, which includes 3,800 fees and charges and Nu 5,000 motor vehicle tax.
For light vehicles with 2501 cc and above, the registration fee is Nu 3,000, Nu 2,500 for 1501cc and 2500cc, and Nu 2,000 for 1500cc and below. The fee for private electric vehicles is Nu 2,000 against Nu 1,500 for government electric vehicles.
The registration fee for a 5-seater taxi is Nu 3,000 and Nu 6,500 for a 12-seater.
In addition to the registration fee, vehicle buyers are subject to Nu 500 as cost of registration certificate.
The annual renewal fee for different vehicle categories is the same as the registration fee.
If the government implements the fee structure with incremental increases for each year for the older vehicles already registered in Thimphu Thromde, the annual renewal fee will get higher each year.
Vehicles registered outside Thimphu but operating within the city will have to re-register under the new system.
The registration fee in the Road Safety and Transport Regulations 2021 was derived from the Tax Policy 1992 with the tax component.
The government is also exploring toll fees as a road pricing strategy to further manage congestion. The Department of Surface Transport is currently working on implementing these charges.
As of July 31 this year, there are 127, 316 vehicles in the country, with highest registered in Thimphu region at 69,947, followed by 39, 551 in Phuentsholing, 8,927 in Gelephu, 5,782 in Samdrupjongkhar, and 3,109 in Mongar.
