Punjab Proposes New Rules for Vehicle Dealers

Punjab has proposed new regulations for motor vehicle dealers under amendments to the Punjab Motor Vehicle Transaction Licensees Act, 2015.

Under the proposed legislation, all motor vehicle dealers will be designated as withholding agents responsible for collecting and depositing taxes, duties and fees at the point of sale.

The bill also proposes restrictions on the delivery of vehicles to buyers. Dealers will not be allowed to hand over a vehicle unless it has been registered, all applicable dues have been paid and government-approved number plates have been affixed.

According to the proposed amendments, dealers found violating these requirements will be liable to pay the outstanding amount along with an equivalent penalty.

The measures are part of the Punjab Finance Bill 2026 and will come into force following approval by the provincial assembly.