An amendment passed in the Senate will cut vehicle licensing rates by 10 per cent.

The Motor Car (Licence Duties Reduction) Act 2026 lowers annual vehicle licence fees for private cars by a tenth.

Mischa Fubler, the Junior Minister of Tourism, Transport, Culture and Sport, said the amendment delivered “practical relief” for motorists.

He added that, depending on the vehicle, residents could save anywhere between $57 and $318.

Mr Fubler said: “Although this may appear modest to some, for many households every dollar saved helps to ease the cost of daily living.”

The amendment, put forward this month, applies to cars in Classes A through H, as well as electric or hybrid vehicles in Class I.

The decrease would come on top of a 10 per cent reduction brought by the Government in 2018.

Mr Fubler admitted that the cuts were expected to result in a reduction of about $1.86 million in government revenue.

However, he added that the Government saw this as a “responsible and worthwhile measure” that would put cash into the local economy.

Tawana Tannock, an independent senator, and Victoria Cunningham, the Opposition Leader in the Senate, both asked how the timing of relicensing would work.

Mr Fubler said that transactions before April 1 would not qualify, while relicensing after that date would. He also warned people not drive cars with expired licenses.

One Bermuda Alliance senator Tarik Smith said that he and the rest of the Opposition supported the Bill, adding: “It is something that I’m sure many folks would appreciate across the island when they go to the Transport Control Department on April 1.”