Vehicles to lose registration for unpaid token tax

ISLAMABAD: The Excise and Taxation Department Islamabad has announced a stringent measure to cancel the registration of vehicles with unpaid token tax starting January 1.

According to department’s spokesperson, the decision, effective from the first day of the new year, will also impose a 200% fine on defaulters.

He urged citizens with outstanding token tax to settle their dues immediately, emphasizing that vehicle owners with long-pending payments should act without delay.

To facilitate compliance, the department has provided a 20-day grace period for tax payments. “Citizens should pay their token taxes promptly to avoid any legal action,” the spokesperson added.

Islamabad Deputy Commissioner Irfan Memon reiterated the administration’s commitment to strict enforcement. “After January 1, vehicles with unpaid token tax will face a crackdown. We urge citizens to avoid penalties and inconvenience by paying their dues in time,” he said.

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It may be added here that the government is tightening noose around tax evaders. The Federal Board of Revenue (FBR) has to achieve a tax collection target of Rs980 billion by December. However, only Rs775 billion have been collected in the initial four months of the current fiscal year.

In continuation of its quest for tax collection, the FBR also decided to take strict action against wealthy individuals who haven’t registered for taxes or have been submitting nil returns.

In November, the tax authority completed all necessary preparations to implement this enforcement plan. In the first phase of the initiative, 5,000 non-filers were targeted with an expected revenue of Rs7 billion in unpaid taxes.

The board, before this stage, conducted an extensive analysis of transaction data for about 200,000 non-filers. From this, they’ve zeroed in on the top 5,000 high-net-worth individuals. What’s interesting is that these individuals share a few common traits.