Key Takeaways
- Sindh has approved reforms to cancel vehicle registrations of non-paying taxpayers.
- Vehicles not paying taxes since July 2010 will be classified as off-road and have their registrations suspended or canceled.
- Dealers can keep vehicles without registration for up to 12 months with certain conditions.
The Sindh Cabinet has approved a series of reforms aimed at improving transparency and administrative efficiency in the province’s vehicle registration, taxation, and insurance system. These measures include the cancellation of registrations for vehicles whose owners fail to pay taxes.
Chief Minister Murad Ali Shah chaired the meeting where these decisions were taken. Under the new policy, owners of damaged, scrap, or unserviceable vehicles must apply for deregistration by September 30, 2026.
Vehicles that have not paid taxes or submitted any declaration since July 2010 will be classified as off-road. Their registrations will be suspended after 30 days if outstanding dues remain unpaid and permanently canceled after 60 days of continued nonpayment.
The reforms were supported by the Securities and Exchange Commission of Pakistan, the Central Depository Company, and the insurance industry. The policy is expected to enhance public convenience and administrative efficiency in Sindh.
To support licensed motor dealers, the cabinet approved a holding period facility allowing them to keep vehicles purchased for resale without registration for an initial six months. Dealers may obtain two additional three-month extensions, with the total holding period capped at 12 months.
During this period, dealers must pay a reporting fee of Rs. 100 per vehicle and maintain a valid dealership license. This measure aims to provide dealers with sufficient time to sell vehicles without immediate registration requirements.
The cabinet also approved changes to third-party motor insurance rules. Under the revised policy, insurance coverage will remain valid until its expiry date even after ownership of a vehicle is transferred. This eliminates the need for buyers to purchase duplicate insurance.
These reforms are part of an ongoing effort by Sindh’s government to streamline and modernize its vehicle registration process while ensuring compliance with tax obligations.
