Token tax for 1000cc to 1500cc cars – August 2025

A large number of people in Pakistan use cars with engine capacity between 1000cc and 1500cc. These cars are popular because they provide good performance, more power, and extra space.

Both local and imported cars fall in this category, including Suzuki Wagon R, Cultus, Toyota Vitz, Passo, Honda City, Changan Alsvin, Toyota Yaris, Honda BR-V, and others.

What is Token Tax?

Token tax is an annual fee that every vehicle owner has to pay to the Excise and Taxation Department. It applies to motorcycles, cars, and commercial vehicles. In Punjab, the Excise, Taxation and Narcotics Control Department is responsible for collecting this tax.

Vehicle owners can pay token tax through the ePay Punjab app, at designated banks, or by visiting excise offices. Paying on time helps avoid fines and keeps the vehicle legally registered.

Lifetime Token Tax

For motorcycles and small cars up to 1000cc, there is a lifetime token tax. Owners of cars up to 1000cc pay a fixed amount of Rs. 20,000 once, which covers them for life.

Token Tax for 1001cc to 1500cc Cars

Cars with engine capacity between 1001cc and 1500cc do not have a lifetime token tax. Instead, owners pay 0.2% of the car’s invoice price every year.

The official statement also says that if a car up to 1000cc is transferred within 10 years of registration, Rs. 20,000 will be charged with a rebate of 10% for each financial year.

Possible Increase from September 2025

The federal government has recently approved amendments to the West Pakistan Motor Vehicles Act. Under this decision, token tax for private, commercial, and public transport vehicles will be increased across the country.

Registration and transfer fees will also be raised, and the Federal Ministry of Interior will have the authority to make changes in the future.

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