LAHORE – The Excise and Taxation Department of Punjab is responsible for collecting token tax on all types of vehicles within the province.
The tax rates vary based on the engine capacity of the vehicles, ensuring a fair and consistent system for vehicle owners.
Token tax is an essential part of the registration process, which is required for all motor vehicles, including motorcycles, cars, and trucks. The rates are determined based on the engine size, with motorcycles and motorcars subject to different tax brackets.
Token Tax Update for January 2026
The government has not revised the toke tax rates ahead of the New Year, mean they will remain same in January 2026. Following are the token tax rates of vehicles:
For motorcycles, the token tax at the time of registration will be set at Rs1500.
For cars, the tax will vary depending on the engine capacity:
Motor cars with up to 1000 CC engine capacity will incur a fixed tax of Rs20,000.
For cars in the 1001 to 1199 CC range, the tax will be 0.2% of the invoice price.
The same tax rate of 0.2% of the invoice price will apply for vehicles with engine capacities between 1200 to 1599 CC.
Cars with engine capacities ranging from 1600 to 1999 CC will also have a tax rate of 0.2% of the invoice price.
Vehicles with engine capacities between 2001 to 2500 CC will incur a tax rate of 0.3% of the invoice price.
For cars with engine capacities above 2500 CC, the tax will be 0.3% of the invoice price.
These rates are part of the government’s effort to streamline vehicle taxation and align it with engine capacities to ensure a fairer tax system for vehicle owners.
