LAHORE – The Punjab Excise and Taxation Department collects token tax on motorcycles and vehicles from citizens across the province.
Motor Vehicles Tax (MVT) is an important levy of Excise & Taxation Department. It generates considerable revenue and is another major source of income to the exchequer. It is administered under the provisions of the Motor Vehicle Ordinance, 1965 and Motor Vehicle Tax Act, 1958.
The token tax is usually collected annually but the department collects lifetime token tax on some vehicles with engine capacity up to 1000cc.
The annual token tax is based on various factors, including the type of vehicle, its engine capacity, and its age.
Suzuki Cultus, Alto, WagonR, Kia Picanto and other vehicles fall in the category of vehicles with engine capacity up to 1000cc.
Tax Update For Cars up to 1000cc
The buyers of Suzuki WagonR 998cc, Suzuki Alto 660cc and other cars with engine capacity of up to 1000cc are required to pay the one-time token tax at the time of purchasing the car.
Currently, the token tax for this category stands at Rs20,000 as it was increased by the Punjab government in Budget for outgoing fiscal year 2024-25.
“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.
As the provincial government is expected to present the budget for next fiscal year 2025-26, it is not confirmed if the token tax for vehicles with engine capacity of up to 1000cc will be revised.
