LAHORE: The Punjab government has announced new regulations barring residents from operating vehicles registered in other provinces within Punjab, as part of a measure to standardize registration practices and increase provincial revenue.
Under the revised law, all vehicles registered outside Punjab must be re-registered within 120 days. Failure to comply will result in vehicle confiscation, according to a report by Urdu News.
Key Details of the Regulation
- Punjab residents with provincial CNICs can no longer register vehicles in Islamabad, Karachi, Peshawar, or Quetta.
- The regulation aims to address the practice of registering vehicles in Islamabad due to higher resale values, which could increase a car’s price by Rs. 50,000 to Rs. 100,000.
Despite Islamabad’s small population of 2 million, vehicle registrations there have surged to over 1.5 million. In 2023 alone, 75,000 vehicles were registered in the federal capital.
Revenue Loss and Policy Implications
Punjab’s Excise and Taxation Department highlighted significant financial losses to the provincial treasury as a result of vehicles being registered in Islamabad. Director General Umar Sher Chattha underscored that the issue also impacts annual token tax collection.
The policy, approved by the provincial cabinet, is projected to generate Rs. 8-10 billion annually for Punjab.
Amendments to the Motor Vehicle Act
To enforce the new regulations, Section 130 of the Motor Vehicle Act has been amended, limiting vehicles registered in other provinces to a maximum stay of 120 days in Punjab without re-registration.
“This reform closes loopholes and simplifies vehicle ownership rules,” said Chattha. “If you live in Punjab, your car must carry a Punjab number plate, even if purchased elsewhere. The re-registration process is straightforward and user-friendly.”
Aiming for Uniformity and Efficiency
The reforms aim to eliminate discrepancies in registration practices, reduce revenue leakage, and bring uniformity to vehicle ownership across Punjab. Authorities have assured residents that any concerns related to number plates will be addressed.
With the new policy in place, Punjab looks to strengthen its financial footing while ensuring a more streamlined system for vehicle registration.
