The Punjab Excise and Taxation Department has introduced a new token tax system for vehicles starting July 1, 2024, increasing costs for car buyers. This change follows a provincial budget revision raising tax rates for the 2024-25 fiscal year.
Previously, token tax was fixed based on engine capacity. The new system now calculates tax based on the vehicle’s invoice price, leading to higher rates for buyers.
| Engine Capacity | New Vehicle Tax | Annual Tax |
|---|---|---|
| Up to 1000 CC | Rs 20,000 | Rs 15,000 |
| 1001 to 1199 CC | 0.2% of Invoice | Rs 1,800 |
| 1200 to 1299 CC | 0.2% of Invoice | Rs 1,800 |
| 1300 CC | 0.2% of Invoice | Rs 1,800 |
| 1301 to 1499 CC | 0.2% of Invoice | Rs 6,000 |
| 1500 CC | 0.2% of Invoice | Rs 6,000 |
| 1501 to 1599 CC | 0.2% of Invoice | Rs 9,000 |
| 1600 to 1999 CC | 0.2% of Invoice | Rs 9,000 |
| 2000 CC | 0.2% of Invoice | Rs 9,000 |
| 2001 to 2500 CC | 0.3% of Invoice | Rs 12,000 |
| Above 2500 CC | 0.3% of Invoice | Rs 12,000 |
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Under the updated structure, the token tax for motor cars up to 1000cc has risen from Rs15,000 to Rs20,000. Vehicles with engine capacities between 1001cc and 2000cc will incur a tax of 0.2% of the invoice price, while those from 2001cc to 2500cc or more will face a tax of 0.3% of the invoice price. This tax is a one-time charge paid at the time of vehicle registration.
