RSTA generates Nu 73.6mn from vehicle ownership transfer

According to the RSTA, a person selling the vehicle must report in person and transfer ownership within 15 days of the sale

The Road Safety and Transport Authority (RSTA) generated Nu 73.6mn from vehicle ownership transfer during the grace period from May 1 to December 31, 2021.

According to the RSTA, about 24,518 vehicle owners have transferred their ownership within the grace period from May to December, 2021. A total of 20,860 vehicle ownerships were transferred in the grace period from May to October, 2021.

The report from the RSTA shows that out of the 24,518 vehicles, ownership transfer of light vehicles was the highest with a total of 20,731, followed by two-wheelers with 1,650.

The report states that Thimphu was the highest generator with a revenue of Nu 39.7mn with 12,730 vehicles transfer registered, followed by Gelephu, Phuentsholing, Mongar, and Samdrup Jongkhar with revenue of Nu 12.7mn, Nu 8.7mn, Nu 7.4mn, and Nu 4.9mn respectively.ย 

RSTAโ€™s Chief Transport Officer Sithar Dorji said the grace period was extended to December 31, 2021 with approval from the Ministry of Information and Communications.

โ€œThe ministry has henceforth no plans to extend the grace period as of now. However, the vehicle ownership transfer will remain available,โ€ he said.

He shared that the fees for vehicle ownership transfer include Nu 500 for a registration certificate, Nu 500 for an ownership certificate, and 1% property tax of the assessed value. From the 1% property tax, a revenue of Nu 73.6mn was generated by the RSTA.ย 

Sithar Dorji said that several ways were introduced during the grace period to make the transfer easier, such as the signing of the letter of undertaking in lieu of the sales deed if the buyer had difficulty in finding the registered owner.

In addition, a request form was made where the registered owner could trace the buyer if somehow the buyer comes for renewal of the documents, he said, adding that an online system was also created where people could apply for ownership transfer online. The letter of undertaking and request form has ended as the grace period comes to an end.

The grace period was carried out to mainly clean the vehicle registration system and to establish a reliable database, apart from validating motor vehicle information.

Sithar Dorji said that transferring ownership and changing the name on the registration certificate after reselling an old car is very important.

โ€œIt assures that if any legal issues or liabilities happen, then it wonโ€™t be liable to the original owner. If somehow a civil wrong or a crime is committed by the buyer while using the vehicle then even the police wonโ€™t be of any help as the original owner didnโ€™t transfer the vehicle,โ€ he added.

RSTA has stated in their regulations, under Section 25, that a person selling the vehicle must report in person and transfer ownership within 15 days of the sale.

The accident claims compensation to the victim must be paid by the original owner even after selling if they fail to transfer the vehicle ownership.

Sonam Yangden Tenzin