Khyber Pakhtunkhwa to tax vehicles registered out of province
Khyber Pakhtunkhwa government has announced plans to implement a road development tax on vehicles registered outside the province.
The proposed legislation, titled the ‘Khyber Pakhtunkhwa Road User Charge Bill 2024’, is set to be presented for approval in the near future, as confirmed by Advisor on Finance to the Chief Minister of Khyber Pakhtunkhwa Muzzammil Aslam.
Under the provisions of the bill, a road user surcharge will be levied on vehicles registered in federal territories and other provinces, with the aim of generating revenue to support road infrastructure projects within Khyber Pakhtunkhwa.
Additionally, to streamline vehicle registration processes and ensure compliance, an announcement regarding the initiation of online vehicle registration in Khyber Pakhtunkhwa is anticipated in the coming days, Muzzammil Aslam said.
Efforts are also underway to reform commercial and residential property taxes within the province, said the finance advisor adding that these initiatives are aimed at enhancing revenue collection.
Speaking on the proposed tax rates and enforcement mechanisms, Public Relations Officer (PRO) to the Finance Advisor Anwar Khattak Khan clarified that the road user charge bill is primarily targeted at residents of Khyber Pakhtunkhwa whose vehicles are registered outside the province.
Discussions are ongoing regarding the specific rates and enforcement procedures to ensure effective implementation of the legislation.
The Excise Department has already issued universal number plates, facilitating the government’s process to tax vehicles registered out of province and streamline tax collection processes.