The Punjab government has approved a significant shift in its vehicle registration policy, aimed at curbing tax evasion and improving security.

Under the new policy, citizens of Punjab will be prohibited from registering their vehicles in other provinces or in Islamabad.

The decision, which was recently ratified by the Punjab cabinet, has been welcomed by the Punjab Excise and Taxation Department.

Excise officials have long expressed concerns over the widespread practice of Punjab residents registering their vehicles outside the province, often in neighboring regions or the federal capital, to avoid local taxes.

This, they say, has not only led to a loss of revenue but also created security challenges for law enforcement agencies.

According to sources within the Excise and Taxation Department, the new policy will make it mandatory for all vehicles owned by Punjab residents to be registered within the province.

A fine will be levied on those found registering their vehicles elsewhere, with an emphasis on preventing future occurrences of such practices.

In addition, the department will work closely with the National Database and Registration Authority (NADRA) to incorporate district codes, which will help authorities track and control vehicle registrations outside Punjab.

To further enforce the policy, vehicles discovered to be registered outside the province will be confiscated during routine security checks.

Excise officials also noted that there is an existing law in place to re-register vehicles previously registered in other provinces or Islamabad back in Punjab. The recent cabinet approval is expected to streamline the process and ensure that vehicles comply with the new registration requirements.

A summary of the law’s enactment will soon be presented to the provincial government for formal approval, after which the new measures will come into effect. The government hopes the policy change will enhance the integrity of the registration system and improve tax compliance across the province.