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Punjab Increases in Vehicle Registration and Transfer Fees

The Punjab vehicle registration and transfer fees increase has been officially notified by the Punjab government, effective September 1, 2025, by the Punjab Excise and Taxation Department as part of the initiative taken by the Punjab government in this regard. The increase applies to all kinds of vehicles, including cars, motorcycles, commercial vehicles, and trucks, the collections from which are intended to generate revenues for a sustainable transport infrastructure and improved regulatory supervision. The new fee structure is capacity-based and classification-based, reflecting a modernization effort towards international practices in vehicle registration. Such Motor Vehicle Transfer Fees are critical for maintaining vehicle databases, in law enforcement, and in public safety programs throughout Punjab. 

New Fee Structure 

Tiered fee model according to increase in Vehicle Registration Fees includes:

  • Moderate increase for vehicles with engine capacity up to 1000cc.
  • Higher increases are for vehicles with engine capacity between 1001cc and 1800cc.
  • All above have the highest increase for more than 1800cc due to higher road impacts and possible emissions.

The Motor Vehicle Transfer Fee below 1000cc was Rs. 2750, may now rise to about Rs. 3025 and above. This structured increase reflects the goal of making vehicle management economically sustainable through government efforts while promoting environmentally responsible vehicle ownership.

What You Need to Understand about New Digital Vehicle Registration System

Advanced digital technology is embedded in Punjab’s new vehicle registration system. It links the numbers instead of an individual vehicle with the owners’ CNICs. Even if the owners were to purchase another vehicle, they can still retain their plates, which can limit duplicate registrations and fraudulent sales. The digital system also allows booking of up to 2 years for vehicle registration numbers, and biometric verification is integrated into the system for increased security and identity confirmation in transfers.

Vehicle Registration and Transfer Fees Structure by Engine Capacity

Vehicle Engine Capacity Updated Transfer Fee(In Rs)
Up to 1000cc  2750 – 3025
1001cc to 1800cc   5500 – 6050
Above 1800cc11,000 – 12,100

These correspond to engine displacement of vehicles and reflect a progressive fee strategy to ensure fair pricing while covering the administrative costs incurred to manage the vehicles.

Vehicle Registration and Transfer Procedure

In order to improve efficiency and transparency, the Punjab Excise and Taxation Department standardized this vehicle registration and transfer process.

  1. Visit the official Excise Department website or use the e-pay Punjab app.
  2. Download and fill out registration or transfer application forms.
  3. Compile necessary documents such as CNIC copies, sales invoices, and proof of vehicle ownership.
  4. Make the payment for registration or motor vehicle transfer fees online or at designated banks.
  5. Schedule biometric verification at the nearest Excise office if required.
  6. Submit applications along with attachments either online or physically.
  7. Receive acknowledgment and track application status.
  8. Upon approval, collect physical or digital vehicle registration certificates and updated documents. 

Increase in Vehicle Registration Fee

According to government objectives, an increase in vehicle registration fees will raise funds for development projects in the provinces, prevent illegal and counterfeit vehicle registrations, and encourage accountability among vehicle owners. The increase in fees is expected to fund better road safety, advance the digitization of vehicle records, and strengthen processes put in place by the regulatory body. Another key objective is linking the vehicle registration to the owner’s CNIC, which ensures that ownership is tracked transparently and makes legal actions easier against offenses related to unregistered or poorly transferred automobiles.

Essential Facts for Vehicle Owners

All the vehicles entering Punjab must be registered. The failure to register the vehicle within the stipulated time period is subject to a penalty, fine, or seizure of the unregistered vehicle. By virtue of the new policy, the number is directly linked to the owner’s Computerized National Identity Card (CNIC). This means that while the vehicle changes ownership, the owner still maintains possession of the number plate, a significant shift from the old system, in which the plates were associated with vehicles. This process simplifies transfer, increases safety, and policies against vehicle fraud incidence. They are encouraged to complete registration or renewals quickly before the adjustments on fees occur.

What is Changing for the Motor Vehicle Transfer Fee? 

The charges for paying in the event of a transfer of ownership from one party to another have been hiked. Fees referred to as the motor vehicle transfer fee have undergone revisions in terms of the administrative processes involved in transferring ownership of a motor car. Fees are tied explicitly to engine size and vehicle type to create a fair and transparent cost system.

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Motor Vehicle Transfer Fee: Changes and Penalties

The increase in the motor vehicle fee comes with penalties applied to owners who delay applications for beyond one month from the date of sale. To further enhance the transfer within clearly fixed time limits, the government has set up a helpline (1035) exclusively for the purpose of assisting vehicle owners on transfer issues as well as reporting errant vehicles. Failure to comply with these rules incurs additional fines when the shift of ownership is not affected within the prescribed time frame, emphasizing regulatory compliance and helping the government to keep accurate motor vehicle records.

Increase in Vehicle Registration Fee and Transfer Fee for Vehicle Owners 

Initially, this fee hike would be a huge financial burden for most vehicle owners, especially for those with numerous vehicles or those with engine capacity models. According to the officials, the benefits that compensate for the costs involved include the improvements in service delivery, enhanced ownership security, and smoother transfer procedures. Early adopters of registering or transferring vehicles before the effective date can also benefit from saving on charges that would increase and reduce the likelihood of incurring penalties.

How to Pay the New Vehicle Registration and Transfer Fees 

In addition, the Punjab government created various platforms for digital payments so that transactions can be carried out with relative ease for compliance and convenience. The e-pay Punjab app, web portals, and bank branches now have provisions for easy payment and fees. Vehicle owners can generate challans online, pay right from home, and even submit proofs to respective Excise Department offices electronically, thereby minimizing visits. 

Importance of the New System of Fees 

The upgraded system, incorporating the new fees, has some benefits in the long run:

  • Increased safety on the road linked by the real owner.
  • Less fraud and more accountability because of CNIC-linked plates.
  • Hassle-free changes in ownership because of the retention of vehicle numbers.
  • More revenue to the government for infrastructure and taxation reforms.
  • Deterrence from legal lapses by owners due to stiff enforcement.
  • All these benefits form a better vehicle management system in Punjab for the betterment of the government and the owners of vehicles.

Conclusion

The increase in vehicle registration and transfer fees is a step of Punjab towards modernization in the vehicle administration and improvement of regulatory frameworks. Increased ownership costs come with this, but the improved transparency, safety, and convenience of the new system would ensure better governance and public safety. They will encourage timely compliance to avoid penalties and avail themselves of streamlined services ushered in by the reforms.

FAQs

Effective September 1, 2025, vehicle registration and ownership transfer fees will increase on a per-engine-capacity basis, such as, for example, Rs 3,025 under 1000cc and Rs 12,100 as such vehicles above 1800cc.

The hikes were meant to modernize the fees within the automatic toll collection system, increase security through CNIC-linked numbers, and improve law enforcement.

Number plates for vehicles were linked to CNICs of the owner, meaning that whenever a vehicle was sold, whoever bought it would still get the original number, thereby reducing fraud and simplifying transfers.

There are additional fees that one incurs when a transfer of ownership occurs later than one month from the sale. This serves to insist on timely compliance and avoid misuse.

Payment of fees can now be made easily through Punjab’s e-pay application, portal, or designated banks online without having to report to these offices for business.

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