**Announcement of Increased Vehicle Transfer Fees in Islamabad**
*Islamabad, Pakistan – June 2024:* The administration of the Islamabad Capital Territory (ICT) has declared a notable rise in vehicle transfer fees, a decision that has ignited extensive conversation among vehicle owners, dealers, and industry participants. This updated fee structure, effective from June 1, 2024, is a component of the government’s overarching strategy to bolster revenue generation and refine the vehicle registration and transfer system.
### Summary of the Fee Increase
The Excise and Taxation Department of Islamabad has amended the transfer fees applicable to both locally made and imported vehicles. The updated rates are determined by engine capacity (cc) and vehicle type, with elevated fees imposed on vehicles featuring larger engine displacements.
According to the new structure:
– **Motorcycles and scooters**: Transfer fee escalated from PKR 500 to PKR 1,000.
– **Vehicles up to 1000cc**: Fee rose from PKR 1,200 to PKR 2,500.
– **Vehicles between 1001cc and 1800cc**: Fee increased from PKR 2,000 to PKR 5,000.
– **Vehicles exceeding 1800cc**: Fee lifted from PKR 3,000 to PKR 10,000.
– **Imported vehicles**: Extra fees may be levied based on customs valuation and the vehicle’s age.
### Justification from the Government
Officials from the Excise and Taxation Department state that the hike in transfer fees aims to:
1. **Increase Revenue**: The ICT administration intends to enhance its non-tax revenue sources to support infrastructure development and public services.
2. **Discourage Unregistered Transfers**: By formalizing the transfer procedure and heightening oversight, the government aspires to diminish the number of vehicles operating without proper documentation.
3. **Promote Digitalization**: The fee increase coincides with the launch of an online transfer system, expected to minimize processing times and reduce corruption.
A spokesperson for the department remarked, “The adjusted fees reflect rising administrative expenses and remain lower compared to other major cities in Pakistan. We are also introducing digital services to enhance transparency and efficiency in the process.”
### Reactions from the Public and Industry
The announcement has been met with mixed responses from the public and the automotive sector.
– **Vehicle Owners**: Numerous private vehicle owners have voiced concerns over the abrupt increase, claiming it adds financial strain to middle-class families.
– **Car Dealers**: Dealerships have cautioned that the fee increase may adversely affect vehicle sales, particularly in the used car market, where transfer fees are a crucial factor for buyers.
– **Transport Associations**: Representatives from transport unions have requested a review of the new fees, proposing that the government should consider a gradual implementation to lessen the burden on low-income individuals.
### Introduction of Digital Transfer System
To support the fee revisions, the ICT administration has unveiled a new online vehicle transfer portal. This system enables users to:
– Submit transfer applications via the internet
– Upload necessary documents
– Pay fees digitally through bank transfers or mobile wallets
– Monitor application status in real time
This initiative is a part of the larger “Digital Pakistan” vision and aims to lessen the requirement for in-person visits to excise offices, thus improving transparency and efficiency.
### Conclusion
Although the rise in vehicle transfer fees in Islamabad aims to enhance revenue collection and administrative effectiveness, it has triggered apprehensions among vehicle owners and dealers. The effectiveness of this policy will depend on how well the government can reconcile revenue objectives with affordability and ease of compliance for the citizens. As the new system is implemented, stakeholders will be keenly observing its effects on the local automobile market and public satisfaction.
For further updates and detailed fee schedules, citizens are encouraged to visit the official website of the Islamabad Excise and Taxation Department.
