LAHORE — The Punjab Excise, Taxation and Narcotics Control Department is rolling out a major reform: from September 1, 2025, every vehicle registration number in the province will be permanently tied to the first owner’s Computerised National Identity Card (CNIC).
This means that whenever a car is sold, the new buyer will no longer inherit the original number plate. Instead, they’ll receive a completely new registration, a move officials say will tighten record-keeping, curb vehicle-related fraud, and ensure tax compliance.
End of “Open Letter” Vehicle Sales
For years, many vehicle transactions in Pakistan have been carried out on so-called “open letters,” where a car changes hands without an official ownership transfer. This loophole often allows buyers to dodge taxes or makes it difficult to trace a car’s actual owner.
The new system aims to eliminate this practice entirely. “We strongly urge citizens to regularise their paperwork, pay their token taxes, and avoid potential legal complications,” said Excise Director General M Umer Sher.
Token Tax Deadlines and Incentives
To encourage compliance, the Excise Department has announced a 10% discount for anyone paying their 2025–26 token tax before August 31, 2025. Officials say this step is part of broader reforms to modernise vehicle ownership records and create a culture of responsible tax payment.
Quick Action on Suspicious Sales
Another notable feature of the new policy is a safeguard for sellers. If someone sells their vehicle but the buyer delays the ownership transfer, the original owner can call the Excise Helpline (1035) and request immediate suspension of that car’s registration.
Officials hope this measure will protect sellers from liability in case the vehicle is used in illegal activity or traffic violations after being sold.
This policy marks one of Punjab’s most significant overhauls of its vehicle registration system in recent years. By directly linking registration numbers to CNICs, authorities aim to bring greater transparency, traceability, and accountability to Pakistan’s car market.
