LAHORE – A significant number of people in Pakistan use cars with engine capacity ranging 1000cc to 1500cc as they deliver impressive performance with more power and space.
The local and imported cars fall in this category include Suzuki Wagon R, Suzuki Cultus, Toyota Vitz, Toyota Passo, Toyota Belta, Mitsubishi Mirage, Kia Picanto, Changan Alsvin, Suzuki XL7, Suzuki Jimny, Honda City, DFSK Glory 580, Toyota Yaris, Honda BR-V, MG 6, Chery Tiggo 4 Pro and Honda Civic.
For owners of the vehicles across Pakistan, it is mandatory to pay the annual token tax collected by the relevant excise and taxation department. However, the people owning vehicle with engine capacity up to 1000 cc pay lifetime token tax.
In Punjab, the Excise, Taxation and Narcotics Control Department is the competent authority to collect the tax.
Token Tax It applies to all motor vehicles, including motorcycles, cars, and commercial vehicles registered in the province.
The amount varies based on the engine capacity (cc) and type of vehicle. Payment can be made online through the ePay Punjab app, designated banks, or Excise offices.
Vehicle owners must pay this tax to avoid fines and ensure legal vehicle status. Lifetime token tax is also applicable for motorcycles and smaller cars of up to 1000cc.
Token Tax Rate of 1000cc-1500cc Cars
According to official information available on excise website, owners of cars with engine capacity of up to 1000cc pay a fixed amount of Rs20,000 in wake of toke tax.
However, the authority charges 0.2 percent of the invoice price of cars with engine capacity ranging from 1001cc to 1500cc.
“If engine power up to 1000cc, is transferred within ten years of such registration, an amount of Rs.20,000/- with a rebate equal to 10% for each financial year, shall be charged,” read official statement.
Token Tax Increasing from September 2025?
Meanwhile, the federal government has decided to increase vehicle token tax as amendments to the West Pakistan Motor Vehicles Act have been approved by the cabinet.
Reports said token tax will be increased for private, commercial, and public transport vehicles across the country.
According to the decision, registration and transfer fees for vehicles will also be increased, while the authority to revise these fees will rest with the Federal Ministry of Interior.
