Punjab implements new token tax for vehicles.
The Punjab Excise and Taxation Department has put an extra burden on car buyers by introducing a new token tax structure effecting from July 1,2024.
The new token tax was implemented after the provincial government changed the tax rates in budget for fiscal year 2024-25.
Earlier, the excise department collected fixed token tax on vehicles based on the engine capacity.
Also read: Budget 2024-25: New tax rates on vehicles in Pakistan
Now, the tax would be determined on the basis of the vehicle’s invoice price.
This decision would ultimately increase the tax rates for buyers.
Token Tax Structure for Vehicles (2024-25)
| Engine Capacity | New Vehicle Tax | Annual Tax |
|---|---|---|
| Up to 1000 CC | Rs 20,000 | Rs 15,000 |
| 1001 to 1199 CC | 0.2% of Invoice | Rs 1,800 |
| 1200 to 1299 CC | 0.2% of Invoice | Rs 1,800 |
| 1300 CC | 0.2% of Invoice | Rs 1,800 |
| 1301 to 1499 CC | 0.2% of Invoice | Rs 6,000 |
| 1500 CC | 0.2% of Invoice | Rs 6,000 |
| 1501 to 1599 CC | 0.2% of Invoice | Rs 9,000 |
| 1600 to 1999 CC | 0.2% of Invoice | Rs 9,000 |
| 2000 CC | 0.2% of Invoice | Rs 9,000 |
| 2001 to 2500 CC | 0.3% of Invoice | Rs 12,000 |
| Above 2500 CC | 0.3% of Invoice | Rs 12,000 |
The token tax on motor cars with engine capacity of up to 1000cc has been increased from Rs15,000 to Rs20,000 for the fiscal year 2024-2025.
Under the new structure, the vehicles with engine capacity between 1001cc and 2000cc will incur a token tax of 0.2% of the invoice price.
Meanwhile, vehicles with engine capacity between 2001cc and 2500cc, or above, will attract a token tax of 0.3% of the invoice price.
This is the one-time tax payable for a new vehicle at the time of registration.
