Why Does the Punjab Government Want to Ban Its Citizens from Registering Vehicles in Islamabad?
Punjab province has approved an amendment to its Motor Vehicle Ordinance, under which residents of Punjab will be prohibited from registering their vehicles in Islamabad, the federal capital, or other provinces (Sindh, Khyber Pakhtunkhwa, Balochistan).
The provincial cabinet of Punjab approved this amendment a few days ago. However, it still requires approval from the provincial assembly to become law.
According to Masood Mukhtar, Secretary of Punjab's Excise and Taxation Department, “If someone is earning in Punjab or contributing to its economic development, then any vehicle purchased with that income should be registered here (in Punjab).”
Previously, a senior officer of the Excise and Taxation Department told the BBC that before the amendment was approved by the Punjab cabinet, Chief Minister Maryam Nawaz was briefed on the issue.
During the briefing, it was explained that Punjab faces significant financial losses because its citizens register their vehicles in Islamabad or other provinces.
Masood Mukhtar clarified that the amendment requires approval from the provincial assembly, which might take some time.
He added that once the amendment becomes law, public awareness campaigns will be conducted to ensure compliance. Initially, there are no plans for fines or crackdowns.
He further stated, “It’s not that we would prohibit vehicles registered outside Punjab from passing through the province.”
He also confirmed that the new law will not apply to vehicles already registered in other provinces or Islamabad.
What Else Does the Proposed Amendment Say?
The proposed amendment also allows vehicle owners in Punjab to register their vehicles in any district of the province. Currently, owners must register their vehicles in the district where they reside.
A press release issued by the Excise and Taxation Department clarified that the proposed amendment does not restrict the interprovincial movement of vehicles.
The press release further stated, “The Motor Vehicle Ordinance 1965 is a provincial law, under which every resident of a province is required to register their vehicle within their province.”
Why Do Punjabis Prefer Registering Vehicles in Islamabad?
Muhammad Adnan, a resident of Punjab whose vehicle is registered in Islamabad, claims that vehicles registered in Islamabad sell at higher prices than those registered in Punjab or other provinces.
He also stated that the registration fee in Punjab is higher compared to Islamabad and other provinces, which discourages some people from registering vehicles in the province.
According to Muhammad Adnan, “If Punjab’s Excise and Taxation Department reduces registration taxes and provides better facilities, like other provinces and Islamabad, people would register their vehicles there.”
Shahid Malik, associated with the Car Dealer Association in Islamabad, says, “It’s a common trend for people from other provinces to prefer registering their vehicles in Islamabad.”
He explained that this trend benefits car owners when they sell their vehicles since the Islamabad number plate alone increases the car's value by several thousand rupees.
Registration Costs in Different Provinces
H.M. Shahzad, President of the All Pakistan Motor Dealers Association in Karachi, stated in an interview with the BBC that vehicle registration is significantly more expensive in Punjab compared to Karachi and Islamabad.
“For instance, a vehicle that costs PKR 24,000–25,000 to register in Karachi and PKR 32,000 in Islamabad costs as much as PKR 40,000 in Punjab,” he explained.
However, he pointed out that Islamabad imposes a luxury tax on high-end vehicles, which is the highest in the country.
Shahid Malik of the Car Dealer Association confirms this, noting, “If we take a 2700cc Prado, for example, its registration in Islamabad costs PKR 2 million more than in Punjab.”
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