Bahrain Rejects Call to Cut Registration Fee for Over-5-Year-Old Cars

BD1,000 Fee on Older Imported Vehicles

The government has rejected a parliamentary proposal to reduce the file-opening fee for older vehicles bearing GCC plates, maintaining the BD1,000 fee for registering vehicles that are more than five years old. It said the fee is aimed at regulating the import of used vehicles and preventing the Kingdom from becoming a hub for old and unsafe cars.

In a written response to the Council of Representatives, the government said it had reviewed the proposal, which called for reducing the fee to BD300 for vehicles that entered Bahrain before October 2024, along with a 30-day grace period to rectify their status. However, it said the proposal could not be implemented as it would harm the public interest and be unfair to those who had previously paid the full fee.

The government linked its decision to the steady rise in the number of registered vehicles, noting an annual growth rate of 3.26%, with an average increase of nearly 20,000 vehicles per year. The total number of registered vehicles reached 749,376 in 2023, up from 545,155 in 2013 and 273,230 in 2003.

It explained that the executive regulations of the Traffic Law had previously prohibited the registration of imported used vehicles older than five years, with limited exceptions, in order to enhance safety standards and curb the rapid growth of vehicle numbers, particularly older cars. An amendment to Article (98) issued by ministerial decision in 2021 later allowed registration for personal use in exchange for a BD1,000 fee, provided safety requirements are met. The move was intended to ensure serious intent in importing vehicles and to distinguish personal use from commercial activity.

The government warned of the negative consequences of unregulated imports, including the risk of bringing in worn-out vehicles, cars that do not meet specifications, or vehicles that may have been tampered with. It stressed that the fee is a regulatory measure rather than a ban, and is charged as a service fee for those wishing to import vehicles older than five years.

It also confirmed that existing exemptions remain in place, including vehicles belonging to diplomatic staff subject to re-export, vehicles of Bahrainis working or studying abroad on condition of re-export from Bahrain, and vehicles of government entities when necessary.

The proposal was submitted in October 2024 by MP Hanan Fardan and several other MPs, who argued that the high fee, along with taxes and charges amounting to 15% of a vehicle’s value, places a heavy burden on low-income individuals and has led some to remove their vehicles from the Kingdom. The government, however, maintained that reducing the fee would not achieve the intended regulatory objectives nor ensure fairness.