The Bahamas government is advancing one of the most comprehensive overhauls of road traffic regulations in decades, with a package of reforms designed to formalize the vehicle market, boost government revenue collection, and modernize services for drivers across the archipelago.
Transport Minister Leon Lundy has outlined the core changes contained in the upcoming Road Traffic (Amendment) Bill 2026, headlined by a new mandate that all imported vehicles obtain an official Certificate of Title before they can be released from Bahamian customs. This requirement will create a permanent, traceable ownership record starting from the moment a vehicle enters the country, addressing longstanding gaps in the secondary vehicle market.
Under the new rules, the certificate must be presented any time a vehicle changes ownership, and sellers will also be required to secure a Motor Vehicle Title Clearance Certificate before completing a transfer. Lundy explained that these measures are targeted at cracking down on unregulated activity in the resale sector, including informal off-the-books transfers, untaxed sales, and transactions involving uninsured vehicles that operate without government oversight.
A second key plank of the reform is a restructured national vehicle licence fee system, with new rates tiered by vehicle weight. Fully electric vehicles will qualify for a reduced annual fee of $125, in a policy move that supports cleaner transportation adoption. For gas-powered vehicles, the new tiers are: Class A (vehicles up to 3,000 pounds) at $160 per year, Class B (3,000 to 5,000 pounds) at $215, Class C at $610, and the heaviest Class D vehicles at $760 annually.
The revised fee structure comes as the Road Traffic Department (RTD) already stands as one of the Bahamian government’s largest revenue generators. In 2025 alone, the department processed more than 130,000 vehicle registrations and over 100,000 driver’s licence applications across its 30+ locations, collecting more than $50 million in total government revenue. Recent corrective audits have already yielded immediate returns: a review of vehicle licence classifications uncovered misregistered vehicles and recovered $112,500 in overdue government revenue, while a separate audit of taxi and livery plates recalled inactive permits for reissuance to active drivers.
To complete the modernization push, the RTD has committed to a full transition to cashless operations, developed in close collaboration with the Central Bank of The Bahamas, the Ministry of Finance, the Public Treasury, and external policy advisers. The new system will accept digital payments via debit cards, credit cards, and the Bahamian central bank digital currency Sand Dollar, and will incorporate a real-time revenue analytics dashboard that allows government officials to monitor collections instantaneously.
A core infrastructure upgrade, the new Transport Management System, is currently being developed by Canadian Bank Note with project management from global professional services firm Deloitte, and Lundy confirmed the system is on track to launch by December this year. Once operational, the platform will allow Bahamian drivers to renew vehicle registrations and driver licences remotely, eliminating the need for in-person visits for routine services. Lundy emphasized that this timeline is not an aspirational goal, but a firm commitment with a fixed deadline.
The reforms also extend to underserved Family Islands, where an automation initiative is rolling out across Inagua, Mayaguana, Acklins, Crooked Island, the Berry Islands and Cat Island. Three of these new automated locations are already operational, with the remaining sites set to open once staff hiring and placement is completed.