Punjab Increases Token Tax Rate for Motor Vehicles – July 2024

• Starting July 2024, the Punjab government has raised the token tax rate for all motor vehicles.
• The 2024-25 budget now bases token tax on the invoice price of vehicles.
• The token tax for motor cars has been increased from Rs 15,000 to Rs 20,000.

LAHORE – Starting July 2024, the Punjab government has increased the token tax rate for all motor vehicles.

In the previous financial year, the Punjab Excise and Taxation Department charged a fixed annual tax based on engine capacity, with a specific token tax for vehicles up to 1000 cc.

In the 2024-25 budget, the provincial government has decided to base the token tax on the invoice price of the vehicles.

The excise department previously collected a token tax of Rs 15,000 on motor cars for the fiscal year 2023-24. For the fiscal year 2025, this tax has been increased by Rs5,000 to Rs20,000.

Complete Token Tax Structure of Punjab Excise

Under the revised structure, the excise department will collect 0.2% of the invoice price as token tax for vehicles with engine capacities between 1001 cc and 2000 cc.

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It will collect 0.3% of the invoice price as token tax for vehicles with engine capacities from 2001 cc to 2500 cc and above.