Punjab Raises Vehicle Token Tax Rates in Pakistan

Table of Contents

Punjab tax increase: In a major shakeup, Punjab has updated its vehicle token tax system Rates in Pakistan. Effective July 1st, the annual tax is based on the vehicle’s invoice value instead of engine capacity.

Also Read: Enjoy Peaceful Farmhouse Getaways by the Lakeshore City

New Vehicle Tax Rates:

  • 1,000 to 2,000 cc: 0.2% of invoice value
  • Over 2,000 cc: 0.3% of invoice value

Lifetime Token Tax Change:

For vehicles under 1,000 cc, the one-time lifetime token tax has increased from Rs. 15,000 to Rs. 20,000. However, the subsequent owners within 10 years will receive a 10% annual discount. After 10 years, the standard yearly tax applies.

Also Read: Discover the Best Club Memberships in Islamabad and KPK

Financial Impact:

This shift is expected to impact car owners, especially in the used car market, significantly. Newer, pricier vehicles may see higher taxes.

Policy Objectives:

The Punjab government aims to:

  • Increase tax revenue
  • Promote transparency in vehicle transactions

Potential Challenges:

  • Increased financial burden on vehicle owners, especially for high-value cars
  • Shift in buying behavior towards cheaper vehicles to save on taxes

This reform brings both benefits and disadvantages for Punjab’s car owners.

For more news and updates, visit the Al Sadat Marketing Website.

Tags :

Share :

About Author
About Author

Syed Sadat Hussain Shah

Talk to Us!

Latest Posts


Leave a Reply

Your email address will not be published. Required fields are marked *