The Punjab government has revised its vehicle token tax policy, set to take effect on July 1.
The revision introduces significant increases in the annual token tax rates, particularly impacting vehicles up to 1000 cc. Under the new regulations, purchasers of such vehicles must again pay the entire token tax upon the transfer of ownership.
The Punjab government has revised the vehicle token tax calculation method, shifting from engine capacity (cc) to invoice value. Now, vehicles with engine capacities from 1000 cc to 2000 cc will incur a token tax of 2% of the invoice price, and those exceeding 2000 cc will face a tax rate of 3%.
Read: Punjab Government Announces First Tax-Free Budget with Rs5.4 Trillion Outlay
Additionally, the lifetime token tax for vehicles up to 1000 cc has been increased from the previous 15,000 PKR to 20,000 PKR. Upon a vehicle’s resale, the new owner must again pay the full token tax.
For ownership transfers within a decade, the new owner will benefit from a 10% annual discount on the lifetime token payment. However, no lifetime token tax will apply to transfers of ownership that take place after 10 years.
