KARACHI, Nov 26 The Sindh excise department has reduced rates of penalty on late registration of motorcycles from Rs10,000 to Rs3,000 by (70pc) on six months default.

The new schedule of penalty on late registration was approved by the chief minister and a notification was issued on November 24.

The new schedule of penalty stipulates that penalty on late registration from six months to one year is Rs3,000, from one to 2 years default Rs4,000 and from two to five years Rs5,000 and penalty on late registration for over five years will be Rs10,000.However, in order to facilitate buyers, who have not yet registered their bikes, a six-month grace period has been.

Earlier, the penalty rates on late registration of bikes were same as levied on late registration of cars which ranges from Rs10,000 to Rs100,000 for various periods of default in registration.

The rates were reduced on the plea from motorcycles dealers associations in the interior Sindh who suggested that high penalty rates for vehicles were justified as their prices fall in millions. However, Rs100,000 penalty on late registration of a bike which is available only in Rs35000 would be ridiculous.

The associations further said that most of the Chinese bikes were sold on higher purchase basis and the owners were unable to get their bike registered because the documents are kept by the dealers which are only returned after the buyers pay the complete installments.

In such circumstances, the buyer has to pay Rs20,000 penalty on late registration of a bike, which he bought in Rs35,000. The department has now advised bike dealers in the interior to get the bikes registered in their name after sale and give NOC to the buyer on completion of installments to get the two-wheeler transferred in his name.

Meanwhile, Karachi Motorcycle Dealers Association refused to welcome reduction in penalty rates on late registration of bikes and suggested there should be no penalty.

President of the association Naeem Qureshi demanded that the penalty be abolished.

He however defended levy of road tax on bikes which is charged at Rs1,000 and is treated a lifetime tax, and said that the amount collected is used to construct roads which are essential for smooth flow of traffic.

The department has announced to launch a campaign after Eidul Azha to check vehicle tax defaulters.