Home » Laws & Taxes » Calculation and Payment of Token Tax in Punjab
IN THIS POST:
– What is Token Tax?
– How to Calculate Token Tax Online?
– How to Pay Token Tax in Punjab?
– Token Tax Rates for Punjab
– Token Tax in Other Parts of Pakistan
Motor vehicle taxes in Pakistan are of several types, but the most common tax paid annually is Road Tax. Since you get a token or sticker to display on your vehicle after the tax has been paid, it is also called Token Tax. Since Token Tax is a provincial tax, its rates and payment methods differ for every province. However, the Excise, Taxation, and Narcotics Control Department of the Government of Punjab is the only one that offers a Token Tax calculator for the convenience of vehicle owners in the province.
Below, we’ll talk about token tax, how to calculate token tax online in Punjab, and even how to pay it conveniently online. We’ll also discuss the token tax rates for Punjab, comparing them with the token tax rates in Sindh and the Capital Territory.
What is Token Tax?
Road Tax or Token Tax is the amount you pay to the provincial government to use the road. Along with a physical receipt, the payment of Token Tax provides you with a sticker that is displayed on the windshield of motor vehicles. The traffic police in any province can legally stop and demand proof of token tax payment if a sticker is not displayed on your car. You can also choose to pay the tax on a half-yearly or yearly basis, renewing it a little before its due date for a new sticker.
How to Use the Online Token Tax Calculator in Punjab?
Since Token Tax is collected by the Excise, Taxation, and Narcotics Control Department, you will need to visit the department’s website for its calculator. Here are the steps for calculating the amount of Token Tax on your vehicle:
- Visit the Excise and Taxation Department’s website.
- Go to Tax Calculators and then Motor Vehicle Tax Calculators.
- Go to the Token Tax Calculator, which will take you to the page shown in the screenshot above.
- Enter your vehicle’s Registration Number, which is also commonly known as the Licence Plate Number.
- The website will give you the required information for your total amount of Token Tax, based on the type of vehicle and the size of your vehicle’s engine.
How to Pay Token Tax in Punjab?
The Government of Punjab has launched the ePay Punjab app with the help of the Punjab Information Technology Board (PITB) to help you pay up to 14 different taxes fairly conveniently. This includes the payment of token tax as well.
As a quick overview, the steps for token tax payment include:
- Downloading the app
- Creating an account
- Choosing the Token Tax option
- Adding your relevant details
- Generating a challan
- Paying the dues
Learn more about the ePay Punjab app and the steps to pay your taxes.
Token Tax Rates for Punjab
Here are the Token Tax rates for all of the cars registered in the province of Punjab:
Engine Capacity | Token Tax on Local Vehicles (PKR) | Token Tax on Imported Vehicles (PKR) |
Motorcycle (Single Payment for Life) | 1,500 | – |
Motor Cars – 1,000 CC or Less (One-Time Payment) | 15,000 | – |
1,000 to 1,300 CC | 1,800 | – |
1,301 to 1,500 CC | 6,000 | 15,000 |
1,501 to 2,000 CC | 9,000 | 25,000 |
2,001 to 2,500 CC | 12,000 | 100,000 |
2,500 above | 15,000 | 300,000 |
If you still have confusion with regards to your dues, you can use the Token tax calculator explained above on the website of the Excise and Taxation Department to determine the amount needed to pay on a 6-monthly or yearly basis to get your vehicle’s token/sticker.
With regards to the table above, please note that all motorcycles and cars below 1,000 CC now only need to make one payment of Token Tax at the time of registration, after which they are tax-free for life as long as they remain on the road.
Token Tax in Other Parts of Pakistan
It is also important to note that each province has its own ruling regarding Token Tax rates and payment methods. For instance, there is no online calculator available for the Capital Territory, but you can choose to pay the tax conveniently online using the City Islamabad app. Meanwhile, in Sindh, you will need to visit the Excise and Taxation Department personally for payment of Token Tax.
As for the rates of Token Tax, for a car between 1,000 CC and 2,500 CC, you would have to pay between PKR 1,500 to PKR 12,000 in Islamabad, which varies slightly from the Token Tax rates in Punjab but the rates may change on an annual basis based on the provincial budget and tax laws.
Now you know all about the Taken Tax calculator online and can use it to determine how much tax is due on your vehicle for the coming year. Stay tuned to Zameen Blog for more informative posts. Send us your comments, suggestions, and feedback at blog@zameen.com.