Islamabad’s Excise and Taxation Department is bringing major changes to how vehicles are registered and tracked. They will soon launch digital vehicle registration cards, which owners can access in their Pak‑ID accounts. These digital cards replace the old physical smart cards and allow users to manage vehicle aspects online like paying token tax or transferring ownership without visiting an office in person.
Registration Numbers Will Belong to People, Not Cars
The new US-style registration system introduces one of the core changes: authorities now link number plates to the vehicle owner, not the vehicle itself. When someone sells a car, they return their plate, and the system digitally reassigns it to their name. The new owner receives an entirely new plate tied to their identity. The system also gives owners the option to retain their registration number for up to one year if they are between cars.
This system greatly improves law enforcement’s ability to track cars and eliminates confusion over who is responsible for violations or taxes.
Online Ownership Transfers and Biometric Verification
With this new approach, vehicle ownership transfers can be done entirely online. Users will apply through the Islamabad Citizen App, where they submit identity details and supporting documents. Once the system approves the request, it issues a PSID payment slip. Users can then pay the token tax and transfer fees via online banking.
After biometric confirmation, the system automatically updates the vehicle card in the owner’s Pak‑ID profile. These steps remove the need to visit Excise offices, improve accuracy, and cut opportunities for corruption.
Tackling Car Fraud and Improving Tax Collection
These reforms are not just for convenience they also aim to reduce fraud and improve revenue. By linking plates to owners and making transfers mandatory, the city will eliminate the illegal open-letter market that allowed cars to remain registered under wrong names. This will protect innocent sellers from legal troubles when a vehicle changes hands unofficially. Meanwhile, digital tracking of unpaid taxes and fake registrations helps the government enforce compliance in real time.
The Excise Department also offers incentives like a 10% rebate for timely token tax payments—to encourage public cooperation.
Toward Smart Mobility: M‑Tags and Digital Parking Integration
The Capital Development Authority has also announced mandatory M‑Tags for all vehicles entering Islamabad. These small electronic tags work with Safe City cameras to automatically identify vehicles making it nearly impossible to evade tolls or parking charges. Without a valid M‑Tag, vehicles may be denied entry into the city.
These tags are part of a larger move toward cashless parking systems. Smart parking meters are being installed in busy areas, and residents can reserve spots or pay via mobile apps, QR codes, or online banking. This improves traffic flow, reduces illegal parking, and helps transition Islamabad into a smart, data-driven city.
