If you are a car fanatic, you are in luck! Imported luxury cars might see a drop in price! The Excise Taxation and Narcotics Control Department (ET&NCD) Punjab is considering removal of Luxury tax on all imported vehicles in the province.

The Excise Taxation and Narcotics Control Department (ET&NCD) Punjab is considering removal of Luxury tax on all imported vehicles in the province.


Importing luxury cars in Punjab might be affordable enough to encourage importing more cars in the near future. Recently, it was noted that drivers preferred going to Islamabad to register their vehicles.

Government representatives stated;

Due to lesser registration rates and quarterly token tax payments, majority of the imported vehicle owners prefer ET&NCD Islamabad, instead of Punjab that takes yearly token tax payments.

New Tax Implementation

A new tax implementation was placed on 1300cc cars. According to the policy, buyers were liable to pay an amount of Rs. 70,000 for a vehicle over 1,300cc, Rs. 150,000 for a vehicle over 1,500 cc, Rs. 200,000 for 2,000 cc and above, and Rs. 300,000 for a vehicle with an engine capacity of over 2,500cc.

According to a source, after meetings held in May 2017, a fine was considered for car owners who had registered their vehicles in provinces other than Punjab. The MVO Act of 1965 states that a vehicle has to be reapplied to ET&NCD for registration if it stays in a province for more than 120 days.