Punjab restricts out-of-province registered cars in new rules

The Punjab government has introduced new regulations prohibiting residents from operating vehicles registered in other provinces within Punjab, a report said.

Under the revised law, 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, the provincial cabinet has approved this measure. Punjab residents with a CNIC issued from the province can no longer register their vehicles in Islamabad, Karachi, Peshawar, or Quetta.

The move addresses a growing trend where vehicles with Islamabad number plates fetched higher resale values—often increasing the car’s price by Rs. 50,000 to Rs. 100,000.

Despite Islamabad’s population being just 2 million, vehicle registrations there exceed 1.5 million, with 75,000 cars registered in 2023 alone.

The Excise and Taxation Department of Punjab cited substantial financial losses to the provincial treasury due to Islamabad registrations.

Director General of Punjab Excise, Umar Sher Chattha, emphasized that the issue extends beyond registration to annual token tax collection.

The new policy is expected to generate Rs. 8-10 billion annually for Punjab.

Earlier, the Motor Vehicle Act’s Section 130 was amended, limiting vehicles registered in other provinces to operate in Punjab for no more than 120 days without re-registration. This aims to close loopholes and simplify vehicle ownership rules.

Chattha further assured residents that concerns over number plates would be alleviated. "If you reside in Punjab, your car must carry a Punjab number plate, even if purchased from another province. The re-registration process is straightforward and eliminates unnecessary complications," he stated.

These reforms aim to curb revenue leakage and bring uniformity to vehicle registration practices within Punjab.