Road tax for vehicles in Pakistan is commonly known as “token tax” as once the tax is paid, a token or sticker is provided by the provincial excise and taxation department. The token display on the vehicle allows the owners to drive in any province without facing any problems.
In case the proof of the token tax is not displayed on any vehicle, the traffic police can stop the vehicle and impose a penalty fee on the owner. The tax can usually be paid on an annual or half-year basis.
As the token tax is a provincial tax, its rates and methods of payment are also different according to each province. However, a certain limit is set by the Federal Excise and Taxation Department.
Graana.com has compiled a comprehensive guide on vehicle tax payments in Punjab.
The Basics – What is Toxen Tax?
A “token tax” is a levy often imposed by a government or other authority and is small or symbolic. This tax is frequently a small, fixed amount that occasionally serves to satisfy legal or administrative obligations rather than to produce a sizable quantity of money. While not a significant source of revenue for the government, token taxes are nonetheless a part of the broader taxation structure.
The phrase “token tax” can be used in some settings, including the ownership and registration of vehicles. In some areas, in addition to other, more important car-related taxes and levies, people may be compelled to pay a modest token tax when registering or renewing their vehicle. This nominal tax, which may be assessed annually or as part of the registration procedure, is frequently only a little sum.
Token taxes are subject to specific rules and quantities that might differ greatly between jurisdictions. To understand the token tax requirements and rates in your particular location, especially if you are dealing with vehicle registration or ownership, it is vital to consult the proper government authorities or documentation.
How to Use the Online Token Tax Calculator in Punjab
The Excise, Taxation and Narcotics Department is responsible for collecting token tax in the province of Punjab. The department has developed a website with the help of the Punjab IT Board, which guides vehicle owners on their tax calculations.
The following steps can help you calculate your token tax accurately:
- Visit the Excise and Taxation Department nearby or visit website.
- Go to the ‘Tax Calculators’ tab and select ‘Motor Vehicle Tax Calculators’.
- Once you open the portal, put in your vehicle’s registration number, which in most cases is your vehicle’s licence plate number (Excise Number Plate).
- The website will provide you with the exact amount of tax according to your vehicle’s type and engine size.
Payment Methods for Vehicle Token Tax
You can pay the vehicle token tax using the following options:
- Mobile banking
- Internet banking
- ATM
- OTC (over the counter) banking transactions
How to Pay Vehicle Token Tax Online in Punjab
The following steps outline the process of paying the vehicle token tax online in Punjab.
- Install the e-Pay Punjab application from Google’s Play Store or Apple’s App Store.
- Create an account to get started.
- Select ‘Token Tax’ under the ‘Excise and Taxation Department’ tab.
- Enter your vehicle’s registration number.
- After confirming details, generate a challan.
- Note down the payment slip ID (PSID) number provided to pay the token tax online.
The 17-digit PSID number generated is unique for each transaction and will be used to pay the token tax online.
Motor Vehicle Token Tax Rates
The following table shows a comprehensive list of all the taxes according to different tax filing years:
| Engine Capacity | Token Tax MVT Local Vehicles | Income Tax (2021-22) | Professional Tax | |
| Filer | Non-Filer | |||
| Motorcycle (at time of registration) | 1500 | —- | —- | 200 |
| Motor Cars 1000 CC | 15000 | 10000 | 20000 | 200 |
| 1000 to 1199 CC | 1800 | 1500 | 3000 | 200 |
| 1200 to 1299 CC | 1800 | 1750 | 3500 | 200 |
| 1300 CC | 1800 | 2500 | 5000 | 200 |
| 1301 to 1499 CC | 6000 | 2500 | 5000 | 200 |
| 1500 CC | 6000 | 3750 | 7500 | 200 |
| 1501 to 1599 CC | 9000 | 3750 | 7500 | 200 |
| 1600 to 1999 CC | 9000 | 4500 | 9000 | 200 |
| 2000 CC | 9000 | 10000 | 20000 | 200 |
| 2001 to 2500 CC | 12000 | 10000 | 20000 | 200 |
| 2500 Above | 15000 | 10000 | 20000 | 200 |
Token Tax Rates on Imported Cars
For all imported cars, the Excise, Taxation and Narcotics department of Punjab has set a different rate of taxes according to the standards set by the federal government:
| Category of Imported Motor Car | Rate of Tax |
| Motor car with engine capacity exceeding 1300cc but not exceeding 1500cc | PKR 15,000/- |
| Motor car with engine capacity exceeding 1500cc but not exceeding 2000 cc | PKR 25,000/- |
| Motor car with engine capacity exceeding 2000cc but not exceeding 2500 cc | PKR 100,000/- |
| Motor car with engine capacity exceeding 2500cc | PKR 300,000 |
For more informative blogs, visit Graana Blog.
FAQs
How is vehicle token tax calculated in Punjab?
Property tax in Punjab is calculated based on the property’s annual rental value (ARV). The local authorities determine the ARV which can vary depending on the property’s location, size, and condition. The tax rate is applied to this ARV.
How much does token tax cost?
Property tax costs depend on the ARV of your property and the prevailing tax rates in your specific locality. Property tax rates can vary from one area to another within Punjab.
How is the Punjab property tax calculated?
To calculate your property tax, you need to know the ARV of your property and the applicable tax rate. You can often find this information from your local municipal or property tax authority.
How can I check my car token tax?
To check your car’s token tax in Punjab, Pakistan, visit the official website of the Punjab Excise, Taxation & Narcotics Control Department. Look for the section or portal dedicated to vehicle tax verification. Enter your car’s registration number and any other required details, then submit the query.
The website will provide information about your car’s token tax and excise tax status, , including the amount due and the due date, if applicable. Ensure you have the correct and up-to-date information, which can vary depending on your specific vehicle and location within Punjab.
