LAHORE – People buying imported cars in Punjab will now have to wait for one year before vehicle can be transferred into their name under new policy introduced by the provincial Excise Department.
Under new rules, an imported vehicle must first be registered in the name of the person who brought it into the country. It cannot then be transferred to another buyer immediately after registration. The restriction is keychange from previous practice, when imported vehicles could be registered and sold to another person without having to wait for a year.
Imported vehicles brought into Pakistan under categories such as Personal Gift and Transfer of Residence were previously eligible for registration followed by an immediate transfer of ownership. That process has now been changed. Once the vehicle is registered, the original importer will have to remain its registered owner for one year. Only after that period has been completed can ownership be officially transferred to someone else.
Excise Department also added check to its computer system to make sure the rule is followed. If the one-year period has not been completed, the system will not allow the ownership transfer to go through.
The decision could have a noticeable impact on Punjab’s used and imported-car market. Officials say imported vehicles make up around 20% of total vehicle registrations in the province on average. A large number of buyers, sellers and dealers could therefore be affected by the new restriction.
For people looking to buy an imported car, the rule also means they will need to pay closer attention to when the vehicle was imported and registered, and whether the one-year waiting period has already been completed.
The policy could also have consequences for the provincial government’s revenue. Officials have warned that restricting immediate transfers of imported vehicles could lead to a significant reduction in revenue for the Excise Department, as fewer ownership-transfer transactions may take place during the restricted period.
The new system check means the restriction is not merely a procedural requirement, the transfer will be blocked electronically until the waiting period is over.
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