Annual vehicle token tax jacked up in Punjab

LAHORE: The Punjab government has increased the annual token tax on vehicles in the entire province with effect from today (July 1).

In Budget 2024-25, the Punjab government had proposed determining the token tax rate on the basis of the vehicle’s value instead of engine capacity. As the prices of many vehicles have increased massively in previous couple of years, the determination of token tax on bases of invoice value with increase the token tax rate.

The hike in token tax was approved in the current budget’s finance bill.

According to the new token tax fee structure, the annual token tax will now be based on the invoice value of the vehicle.

In Punjab for vehicles with engine capacities ranging from 1000cc to 2000cc, a two percent annual token tax will be applied on their invoice value.

Previously, the token tax was calculated based on the engine power of the vehicles. For vehicles above 2000cc, a three percent annual token tax will be levied on the invoice price.

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Additionally, the lifetime token tax for vehicles up to 1000cc has been increased from Rs15,000 to Rs20,000.

If the ownership of a vehicle up to 1000cc is transferred, the token tax will have to be paid again.

However, if the ownership is transferred after 10 years, the lifetime token tax will not be applicable.