LAHORE – Buying a new car or bike in Punjab may soon look very different after proposed amendment to the Punjab Finance Bill 2026.
In previous years, buyers have driven out of showrooms with temporary ‘Applied For’ cars, and started using vehicles without registration. But the practice could end soon, as the government moves to ensure every new vehicle is fully registered, taxed, and fitted with official number plates before it hits the road.
Punjab Government proposed major overhaul of the vehicle registration process through the Punjab Finance Bill 2026, aiming to ensure that all new vehicles are registered, taxed, and fitted with official number plates before being delivered to buyers.
The proposal seeks to amend Punjab Motor Vehicle Transaction Licensees Act, 2015 by introducing a new Section 3-A, which would designate motor vehicle transaction licensees as withholding agents for the collection of taxes, fees, duties, and other government charges related to vehicle sales.
Under the amendment, authorized dealers would be required to facilitate the registration process and deposit all applicable government dues at the time of sale. Dealers would also be prohibited from delivering a sold vehicle unless it has been officially registered, all prescribed taxes and fees have been paid, and government-approved standardized number plates have been installed.
The move is expected to bring an end to the common practice of buyers taking possession of new vehicles with temporary registration status or ‘Applied For’ number plates while awaiting completion of registration formalities.
The draft legislation introduces strict penalties for non-compliance. Any dealer found delivering a vehicle without fulfilling the prescribed requirements would be liable to pay the outstanding taxes, fees, duties, and other charges, along with an additional penalty equal to the amount owed.
The new changes are intended to strengthen tax compliance, improve revenue collection, and enhance vehicle traceability by ensuring that every new vehicle entering the road network is fully documented from the outset.
After proper approval, the amendment would alter vehicle purchasing process by shifting key registration responsibilities from buyers to dealerships and integrating regulatory compliance into the point-of-sale transaction.
The proposal forms part of broader fiscal and administrative measures outlined in the Punjab Finance Bill 2026 and is expected to have far-reaching implications for vehicle dealers, buyers, and the Excise, Taxation and Narcotics Control Department.
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