Owning a car in Pakistan comes with annual token taxes, but the amount you pay depends on your car’s engine capacity and your tax filing status. This article provides a clear breakdown of the current token tax rates 2025, in Pakistan, for private motor vehicles, highlighting the difference between filers and non-filers.
Token Tax Rates in Islamabad:
Advance tax on private motor vehicles is calculated based on engine capacity (cc) and tax filer status.
For filers, vehicles up to 1000cc are taxed at Rs. 800, while non-filers pay Rs. 1600. Tax brackets progressively increase for higher engine capacities, with the highest tax of Rs. 10,000 for filers and Rs. 20,000 for non-filers applied to vehicles with 2000cc and above engines.
Advance tax on passenger transport vehicles is determined by the vehicle’s seating capacity and whether it is air-conditioned.
- Vehicles with 4-9 passengers incur a tax of Rs. 500 for non-AC and Rs. 1000 for AC models.
- For 10-19 passengers, the tax is Rs. 1500 and Rs. 2000 respectively.
- Vehicles carrying 20 or more passengers are taxed at Rs. 2500 for non-AC and Rs. 4000 for AC variants.
Token Tax Rates in Punjab:
The Punjab government has implemented a significant change to its vehicle taxation system, impacting annual token taxes for cars registered in Punjab. Here’s a breakdown of the key points:
Previously, token tax was determined by engine capacity. Now, it’s based on the vehicle’s invoice value (purchase price).
- Vehicles with an invoice value between PKR 1,000,000 and PKR 2,000,000: 0.2% of invoice value
- Vehicles with an invoice value exceeding PKR 2,000,000: 0.3% of invoice value
The lifetime token tax for vehicles in Punjab under 1,000cc has increased from PKR 15,000 to PKR 20,000. However, vehicle ownership transfer in Punjab within 10 years of purchase incurs a discount (10% per year).
Overall, this new token tax system in Punjab introduces a value-based approach, potentially impacting car purchasing decisions and raising tax revenue. However, it also raises concerns about affordability for some car owners.
Okay, here’s an article summarizing the motor vehicle token tax rates in Khyber Pakhtunkhwa (KPK) based on the information from the official Excise & Taxation Department website.
Token Tax Rates in KPK:
The Khyber Pakhtunkhwa (KPK) Excise & Taxation Department levies an annual token tax on motor vehicles registered in the province. The rates vary depending on the type of vehicle, its usage, engine capacity, and seating capacity. A one-time payment of Rs. 1,000 covers the lifetime token tax for Motorcycle/Scooter. Here’s a breakdown of other token tax rates applicable in KPK:
All tractors (with or without trailers): Rs. 600
Goods Transport Vehicles (Trucks, Trailers, Delivery Vans): Rates are based on unladen or maximum laden weight which are listed below;
- Up to 1250 Kg (unladen): Rs. 500
- Up to 2030 Kg (laden): Rs. 800
- 2031 Kg to 4060 Kg (laden): Rs. 820
- 4061 Kg to 6090 Kg (laden): Rs. 1,200
- 6091 Kg to 8120 Kg (laden): Rs. 2,000
- 8121 Kg to 12000 Kg (laden): Rs. 4,000
- 12001 Kg to 16000 Kg (laden, incl. long trailers): Rs. 6,000
- Above 16000 Kg (laden, incl. long trailers): Rs. 8,000
Passenger Transport Vehicles (For Hire):
- Tricycle/Rickshaw (up to 3 seats): Rs. 400
- Other vehicles (up to 4 seats): Rs. 520
- Other vehicles (5-6 seats): Rs. 652
- Vehicles (over 6 seats) on ‘A’ routes: Rs. 180 per seat
- Vehicles (7-20 seats) plying exclusively within Corporation/Municipality/Cantonment limits: Rs. 160 per seat
- Vehicles (7-20 seats) plying partly within and outside these limits (if 60% of the route is within): Rs. 100 per seat
Additional, withholding tax to be paid under section 234 at the time of collection of motor vehicle tax (Token Tax) in respect of Private Motor Cars have been revised and higher rates have been prescribed for ‘non-filers’, as under:
- Up to 1000cc: Rs. 1,000 (Filer/Non-Filer)
- 1001cc to 1199cc: Rs. 1,800 (Filer) / Rs. 3,600 (Non-Filer)
- 1200cc to 1299cc: Rs. 2,000 (Filer) / Rs. 4,000 (Non-Filer)
- 1300cc to 1499cc: Rs. 3,000 (Filer) / Rs. 6,000 (Non-Filer)
- 1500cc to 1599cc: Rs. 4,500 (Filer) / Rs. 9,000 (Non-Filer)
- 1600cc to 1999cc: Rs. 6,000 (Filer) / Rs. 12,000 (Non-Filer)
- 2000cc & Above: Rs. 12,000 (Filer) / Rs. 24,000 (Non-Filer)
Token Taxes Rtaes in Sindh
The Sindh Excise, Taxation & Narcotics Control Department administers various taxes and fees related to motor vehicles under the Sindh Motor Vehicle Taxation Act, 1958, and associated rules. Understanding these charges is crucial for vehicle owners in the province.
Here’s a breakdown of the token taxes in Sindh as mentioned:
- Motorcycles/Scooters: For already registered motorcycles and scooters, the annual tax is Rs. 80. This rate appears consistent regardless of whether the vehicle has completed 5, 10, or 15 years since registration.
- Cars/Jeeps (Private/Non-Commercial): Extracting a clear schedule of annual tax rates based purely on engine capacity (CC) for registered cars proved difficult from the source page. The information indicated complex calculations potentially involving the vehicle’s age (e.g., a mention of Rs. 15,000 for vehicles up to 1000cc that are between 3 and 5 years old), but a straightforward table of rates based only on CC was not available in the extracted text. Owners should consult the department directly or use their online calculators for precise annual tax figures for cars.
Token Tax Rates in Balochistan:
The Government of Balochistan levies token taxes on motor vehicles registered in the province, governed by a specific schedule. These rates vary significantly based on vehicle type, usage, capacity (engine, weight, or seating), and age. Special provisions, including lifetime taxes and exemptions for electric vehicles (valid until June 30, 2025), are notable features of the current structure.
Here is a detailed breakdown based on the provided schedules:
Motorcycles & Three-Wheelers:
- Motorcycle: Rs. 1,500 (Life Time Tax). Electric Motorcycles receive a 20% rebate until June 30, 2025.
- Rickshaw: Rs. 1,000 per year. Electric Rickshaws are exempted until June 30, 2025.
- Motorcycle Trolley / 3 wheeler loaders: Rs. 600 per year. Electric 3 wheelers are exempted until June 30, 2025.
Private Cars, Jeeps, Vans & Station Wagons:
- Cars and Jeeps (Up to 1,000 cc) & Vans and Station Wagons (Up to 1,000 cc): Subject to Life Time Tax, levied as under:
- (a) New registration / < 5 years old: Rs. 11,000.
- (b) 5 to 10 years old: Rs. 8,000 per year OR Rs. 10,000 (one-time payment). (Image text needs clarification).
- (c) Above 10 years old: Rs. 1,000 per year OR Rs. 7,000 (one-time payment). (Image text needs clarification).
- (Explanation I: For lifetime tax, the stated rates apply for the period for which tax has been paid. Periods where tax was not paid are excluded from the range calculation.)
- Cars and Jeeps / Vans and Station Wagons (1001-1500 cc): Rs. 1,200 per year.
- Cars and Jeeps / Vans and Station Wagons (1501-2000 cc): Rs. 1,500 per year.
- Cars and Jeeps / Vans and Station Wagons (Above 2000 cc): Rs. 1,800 per year.
- Pick up / Delivery Vans: Rs. 1,200 per year.
Commercial Goods Transport:
- Mini Truck (4060-8119 Kg): Rs. 1,600 per year.
- Truck / Oil Tanker (8,120-14,200 Kg, 6 wheeler): Rs. 4,000 per year. Electric Trucks exempted until June 30, 2025.
- Truck / Oil Tanker (14,201-28,000 Kg, 10/12 wheeler): Rs. 4,800 per year. Electric Trucks exempted until June 30, 2025.
- Trailers (All types) above 23,200 Kg: Rs. 5,200 per year. Electric Prime Movers exempted until June 30, 2025.
Buses & Tractors:
- Mini Buses LTV: Rs. 60 per Seat / year.
- BUS HTV (up to seating capacity 44): Rs. 100 per Seat / year. Electric Buses exempted until June 30, 2025.
- BUS HTV (above seating capacity 44): Rs. 60 per Seat / year. Electric Buses exempted until June 30, 2025.
- Tractor (Non-commercial): Exempted.
- Tractor (Commercial): Rs. 1,600 per year.
Penalties and Explanations:
- Penalty on default of token tax: Rs. 100 / Quarter.
- Electric Vehicle Tax Calculation: (Explanation II) Taxes/registration fees for electric vehicles are charged based on their respective categories after converting the power from Kilo Watts (KW) to an equivalent engine capacity (cc).
Key Takeaways
Filing your taxes benefits you! Filers generally pay significantly lower token taxes compared to non-filers.
- These are the base token tax rates. Additional taxes or fees may apply depending on your vehicle’s registration location and purpose.
- The difference in tax rates can be substantial, especially for higher engine capacities.
- Timely filing of tax returns can save you money on your annual token tax.
- Newer, more expensive vehicles may face higher taxes in Punjab.
- It’s recommended to consult the relevant provincial excise and taxation department for the most up-to-date information specific to your region.
Considering buying a car? Factor in the token tax when calculating the total ownership cost. Are you a non-filer? Consider filing your taxes to potentially enjoy lower token tax rates in the future.
I am a filer but when i calculate token tax on line in ICT app i get full tax (normal) for my car. why not tax amount for a filer person? For example annual token tax for my car is 4000 and the same is calculated for me along with 2500 income tax
2500 of the income tax is adjustable against your final taxes at the end of the year while filing your tax-returns.
Token tax applicable in punjab or all provinces and how can I check my vehcle token tax
Token tax rates for all the country are updated. You can reach the concerned authority for checking the token.