Ownership & paperwork
Token Tax Rates in Punjab: What You Actually Pay
Token tax is the annual motor vehicle tax every registered car in Punjab owes, and it is where most owners discover that the headline figure is only part of the bill. Income tax and withholding tax are collected alongside it, and the rate depends on your filer status as much as your engine size. Here is what the Excise & Taxation Department actually charges.
Figures last verified against official sources on
Token tax rates by engine capacity
Punjab charges a one-time lifetime token tax on smaller cars and an annual amount above that. These are the rates as published by the department:
| Engine capacity | Token tax |
|---|---|
| Motorcycle (at registration) | PKR 1,500 |
| Up to 1000cc | PKR 20,000 (one time, lifetime) |
| 1001 – 1199cc | 0.3% of invoice price |
| 1200 – 1299cc | PKR 1,800 |
| 1300cc | PKR 1,800 |
| 1301 – 1499cc | PKR 6,000 |
| 1500cc | PKR 6,000 |
| 1501 – 1599cc | PKR 9,000 |
| 1600 – 1999cc | PKR 9,000 |
| 2000cc | PKR 9,000 |
| 2001 – 2500cc | 0.4% of invoice price |
| Above 2500cc | PKR 15,000 |
Income tax and withholding tax on top
Token tax is not the whole bill. The department also collects income tax and, since July 2024, withholding tax at the time of payment. Filer status makes a substantial difference:
| Levy | Rate |
|---|---|
| Income tax — filer | PKR 10,000 |
| Income tax — non-filer | PKR 30,000 |
| Withholding tax (from July 2024) | 0.5% of value (filer, up to 850cc) rising to 12% of value (filer, 3000cc and above) |
| Professional tax | PKR 200 (all categories) |
The gap between filer and non-filer income tax is PKR 20,000 a year on the same car. If you are not on the Active Taxpayers List, getting on it pays for itself on vehicle tax alone.
The 10% early payment rebate
The department allows a rebate equal to 10% of the annual token tax where the whole year is paid on or before 31 August of the financial year. It is a straightforward discount for paying early, and it is routinely missed.
Electric vehicle exemption
Punjab exempts 95% of the registration fee and 95% of the motor vehicle tax for electric vehicles. On the running-cost side this is a far larger concession than it first appears, and it stacks with the lower per-kilometre cost of electricity against petrol.
How to pay
Look up what you owe
Use the department's own online tax calculator for motor vehicles, which has separate calculators for new registration, token tax and transfer of ownership.
Generate a challan
Payment runs through ePay Punjab and designated bank counters. Generating the challan against your registration number keeps the payment tied to the right vehicle.
Pay before 31 August for the rebate
Paying the full year on or before 31 August qualifies for the 10% rebate on the annual token tax.
Keep the receipt
You will need proof of paid token tax for an ownership transfer, and a prospective buyer will ask to see it.
Frequently asked questions
How much is token tax for a 660cc or 1000cc car in Punjab?
Cars up to 1000cc pay PKR 20,000 once, as a lifetime token tax, rather than an annual amount. That covers the token tax for the life of the vehicle, which is a large part of why small-engine cars are the cheapest category to own in Pakistan.
What is the difference in token tax between a filer and a non-filer?
Income tax collected with token tax is PKR 10,000 for filers and PKR 30,000 for non-filers — a PKR 20,000 annual difference on the same vehicle. Withholding tax rates also favour filers.
Can I get a discount for paying token tax early?
Yes. Punjab Excise allows a rebate equal to 10% of the annual token tax if the tax for the whole year is paid on or before 31 August of that financial year.
Do electric vehicles pay token tax in Punjab?
Electric vehicles receive a 95% exemption on both the registration fee and the motor vehicle tax in Punjab, so the amount payable is a fraction of that for an equivalent petrol car.
What happens if I do not pay token tax?
Arrears accumulate against the vehicle and must be cleared before an ownership transfer can be recorded. That makes unpaid token tax a problem at the point of sale, when it is usually the seller who ends up paying it in order to close the deal.
Sources
- Punjab Excise & Taxation — Motor Vehicle Tax
- Punjab Excise & Taxation — Online Tax Calculator for Motor Vehicles
Government fees and tax rates change with provincial budgets. Confirm current figures with the relevant department before making a payment.