Islamabad: The federal government has proposed a new law to take strict action against smuggled vehicles. Under the proposed law, any vehicle with a tampered or changed chassis number will be seized.
According to the draft law, if a vehicle’s chassis number has been changed, welded, or filled with material to hide its original identity, it will be considered smuggled — even if it is registered with a motor registration authority.
The government plans to conduct forensic tests on vehicles to check for any tampering. If any changes are found in the chassis number during these tests, the vehicle will be treated as smuggled and immediately confiscated.
Officials say the purpose of this step is to stop vehicle smuggling and ensure that only legal and safe vehicles run on the roads. Government sources added that this law will also help control car theft and illegal trade.
Authorities have advised the public to avoid buying any vehicle with signs of chassis tampering. They also requested all vehicle owners to get forensic tests done to confirm the legal status of their vehicles.
Federal Budget 2025-26:
In the new budget, the government has proposed 18% sales tax on small cars up to 850cc. Finance Minister Muhammad Aurangzeb said the aim is to bring uniformity in sales tax on petrol, diesel, and hybrid vehicles.
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The budget also includes strict action against unregistered businesses. Their bank accounts will be frozen, property transfers will be stopped, and in serious cases, their shops will be sealed, and goods will be seized. However, affected persons will have the right to appeal within 30 days.
The government has also decided to impose petroleum and carbon levy on furnace oil. According to the finance minister, a Rs2.5 per litre carbon levy will be applied on petrol, high-speed diesel, and furnace oil. This will increase to Rs5 per litre in 2026-27.
Items sold without tax stamps or barcodes will be confiscated. The government will also take help from provincial officers to enforce tax laws. Efforts will be made to stop smuggling of non-duty-paid cigarettes.
The new budget introduces customs reforms and a 10% surcharge to help pay off circular debt.
The finance minister also announced steps to promote the use of electric vehicles. The government will encourage electric motorcycles and rickshaws instead of petrol and diesel vehicles.
