Dealers Reject Sindh’s New Vehicle Registration Law
Motor Vehicle Dealers Call for Review and Deferment of Amended Legislation
Introduction
The recent amendment to Sindh’s motor vehicle registration laws has sparked strong opposition from dealers and industry stakeholders. The Sindh government and the Sindh Excise, Taxation, and Narcotics Control Department have introduced a new policy requiring vehicle registration within a month. However, motor vehicle dealers are calling for an immediate review and a three-month deferment to adjust to these changes and clear existing inventory.
This article explores the impact of the new legislation, the dealers’ concerns, and the government’s stance on enforcing the law.
Understanding Sindh’s New Vehicle Registration Law
Overview of the Amendment
The amendment to Section 23 of The Provincial Motor Vehicles Ordinance 1965 significantly reduces the vehicle registration period from six months to just one month. The law applies to all vehicles, including motorcycles, rickshaws, and cars.
Key Provisions of the Law
The revised law states:
- Mandatory Registration Within 30 Days:
- All imported and locally manufactured vehicles must be registered within 30 days of their Goods Declaration/Bill of Entry (for imports) or invoice date (for local manufacturers).
- Restriction on Unregistered Vehicles in Sindh:
- Any vehicle meant for use in another province must be transported through a carrier and cannot be driven in Sindh without proper registration.
- Strict Penalties for Non-Compliance:
- Failing to register a vehicle within the 30-day period results in fines ranging from Rs5,000 for motorcycles to Rs200,000 for four-wheelers, depending on the delay period (30 to 180 days).
Dealers’ Response to the New Law
Concerns Raised by the Automotive Industry
Dealers have strongly opposed the sudden enforcement of this law, arguing that it is impractical and will hurt businesses.
- Short Sales Window: Dealers claim that the 30-day limit is unrealistic, as not all vehicles are sold within this timeframe.
- Impact on Small-Scale Dealers: Many small dealerships operate on thin profit margins, and additional penalties will increase financial strain.
- Increased Bureaucratic Challenges: Dealers fear excessive bureaucratic hurdles in the registration process, making compliance difficult.
Industry Experts Speak Out
Muhammad Sabir Shaikh, a motorcycle dealer and auto sector expert, has urged the government to consult industry stakeholders before finalizing the law’s implementation. He argues:
“The government should review the law by June 30 and consider a more practical approach. Businesses are already struggling, and enforcing such laws will further hinder economic growth.”
Karachi Motorcycle Dealers Association Chairman, Muhammad Ahsan Gujjar, echoed similar concerns:
“We respect the law, but sudden enforcement puts us in a difficult position. A three-month deferment would allow us to clear our existing stock and adapt.”
Comparisons with Other Provinces
Dealers suggest that Sindh should adopt Punjab’s online vehicle registration system, which minimizes bureaucratic inefficiencies and eliminates corruption. Unlike Sindh’s new system, Punjab’s process allows dealers to complete registration digitally without unnecessary delays.
The Government’s Stance
An official from the Sindh Excise, Taxation, and Narcotics Control Department defended the amendment, stating that it was introduced to:
- Curb unregistered vehicle use.
- Prevent vehicle theft and fraudulent sales.
- Assist law enforcement in tracking vehicles more efficiently.
According to the official:
“The Sindh Assembly passed this amendment to streamline the vehicle registration process and enhance security. Compliance with the law will benefit both dealers and vehicle owners.”
Impact on the Automotive Industry
The sudden implementation of this law raises several challenges:
- Inventory Management Issues: Dealers typically hold vehicles for longer than 30 days before selling them.
- Increased Compliance Costs: The penalties could lead to significant financial burdens on small dealerships.
- Market Disruptions: Consumers may delay purchases due to registration complications, affecting overall sales.
Recommendations for Dealers and Policymakers
For Dealers:
- Stay updated on legal changes and ensure compliance.
- Streamline inventory turnover to meet the 30-day registration requirement.
- Engage in discussions with the government for a fairer implementation timeline.
For the Government:
- Conduct consultations with auto industry stakeholders.
- Consider extending the registration period to at least 90 days.
- Implement an online registration system similar to Punjab’s for easier compliance.
Conclusion
The revised vehicle registration law in Sindh has faced strong opposition from motor vehicle dealers, who argue that it is impractical and could negatively impact the industry. While the government maintains that the law is necessary for security and regulation, dealers are requesting a three-month deferment and a review of the policy.
A collaborative approach involving dealers, policymakers, and law enforcement agencies could result in a more practical and effective registration process that benefits all stakeholders.
FAQs
1. What is the new vehicle registration law in Sindh?
The amended law requires all imported and locally manufactured vehicles to be registered within 30 days of their Goods Declaration/Bill of Entry (for imports) or invoice date (for local vehicles).
2. What are the penalties for late registration?
Penalties range from Rs5,000 for motorcycles to Rs200,000 for four-wheelers, depending on the delay period, which can range from 30 to 180 days.
3. Why are dealers opposing the law?
Dealers argue that the 30-day limit is impractical and does not account for inventory turnover, leading to financial burdens and market disruptions.
4. How does this law compare to Punjab’s system?
Punjab has an online registration system that allows dealers to complete the process digitally, reducing bureaucratic delays and corruption.
5. What do dealers want from the government?
Dealers are requesting a three-month deferment of the law’s implementation and a review to make it more practical for businesses.
