The Punjab government has approved a landmark shift in its vehicle registration policy, aimed at tackling tax evasion and enhancing security measures within the province. Under this new directive, residents of Punjab will no longer be allowed to register their vehicles in other provinces or in Islamabad.
Addressing Tax Evasion and Revenue Loss
This policy change, ratified by the Punjab cabinet, addresses long-standing concerns raised by the Punjab Excise and Taxation Department. Many residents of Punjab have been registering their vehicles in neighboring provinces or the federal capital to bypass local taxes, resulting in significant revenue losses for the province.
By mandating that all vehicles owned by Punjab residents be registered within the province, the government aims to plug this revenue gap. A fine will be imposed on individuals found registering their vehicles outside Punjab, discouraging future violations of the policy.
Strengthening Security Measures
The practice of out-of-province vehicle registrations has also posed security challenges for law enforcement agencies. To combat this, the Excise and Taxation Department will collaborate with the National Database and Registration Authority (NADRA) to integrate district codes into the registration system. These codes will enable authorities to track and regulate vehicle registrations effectively.
To ensure compliance, vehicles discovered to be registered outside Punjab will be subject to confiscation during routine security checks.
Simplifying the Re-registration Process
The new policy also includes provisions to streamline the re-registration of vehicles previously registered in other provinces or Islamabad. An existing law allows such vehicles to be re-registered in Punjab, but the recent cabinet approval is expected to simplify the process and encourage vehicle owners to comply with the new requirements.
Implementation Timeline
A summary of the new policy’s enactment will soon be presented to the provincial government for formal approval. Once approved, the measures will be implemented to improve the integrity of the vehicle registration system and enhance tax compliance across the province.
A Positive Step Forward
The new vehicle registration policy reflects the Punjab government’s commitment to addressing critical issues of tax evasion and security. By ensuring that vehicle registrations are confined to the province, the government aims to create a more robust and transparent system that benefits both residents and the administration.
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