The Khyber Pakhtunkhwa (K-P) government plans to introduce a “Road User Tax” for new vehicles registered outside the province, including those from Punjab, Sindh, Islamabad, and Balochistan.
This tax is aimed at boosting revenue because currently, most vehicles in K-P are registered in other provinces. The K-P Excise Department has only managed to register a small fraction of vehicles locally, which has severely impacted revenue generation for the province.
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According to sources, the Excise Department of K-P has presented two options to amend the Road Tax Act to the provincial government. The first option proposes collecting a lump sum road tax, while the second option suggests re-registering vehicles with number plates from other provinces.
However, the logistical challenges involved in re-registering millions of vehicles, including the need for check posts, vehicle blocking, and parking space, make the Road User Tax a more feasible option for implementation and approval by the Cabinet.
