Token Tax Punjab 2024| Online Payment, Rates & Updates

Are you tired of the hassle of paying token tax at the Excise and Taxation Office? With the digital age upon us, the Punjab government has made it easier than ever to pay your token tax online.

In this comprehensive guide, we’ll cover everything you need to know about token tax in Punjab, including:

• Recent changes in token tax policy
• How to calculate and pay token tax online
• Token tax rates for different vehicle types
• Frequently asked questions

By the end of this article, you’ll have all the information you need to ensure your vehicle is legally registered and avoid any penalties.

Punjab Offers 10% Discount on Token Tax Payments

In a recent move to encourage digital payments, the Punjab government has announced a 10% discount on vehicle token tax payments made through the ePay Punjab app. This offer is valid until September 30, 2024, making it an excellent opportunity for vehicle owners to save money while enjoying the convenience of online payments. The ePay Punjab app allows users to pay various taxes and fees from their mobile devices, eliminating the need to visit government offices.

New Token Tax Policy for 2024-25

The 2024-25 fiscal budget introduced significant changes to the token tax policy in Punjab, affecting both new and used vehicle owners. To ensure you understand how these changes might affect your vehicle, you might want to review our guide on vehicle verification which provides detailed information on checking and updating your vehicle details . Key updates include:

• New Ownership Transfer Rule: For vehicles with an engine capacity of up to 1000cc, the new owner must pay the full token tax again when transferring ownership.
• Annual Token Tax Calculation: The annual token tax is now calculated based on the vehicle’s invoice value instead of engine capacity (cc). Vehicles with engine capacities between 1000cc and 2000cc will be taxed at 0.2% of the invoice value, while vehicles exceeding 2000cc will be taxed at 0.3% of the invoice value annually.

Increased Lifetime Token Tax for Vehicles Up to 1000cc

The lifetime token tax for vehicles with an engine capacity of up to 1000cc has increased from PKR 15,000 to PKR 20,000. If ownership is transferred within 10 years, the new owner will be required to pay the lifetime token tax with a 10% annual discount. However, if the transfer takes place after 10 years, no lifetime token tax will be charged.

Benefits of Online Token Tax Payment

Online token tax payment offers several benefits:

• Convenience: Pay from the comfort of your home without visiting government offices.
• Efficiency: Faster processing with instant receipts and confirmations.
• Transparency: Reduces the risk of errors and corruption.

Reasons for Changes in Token Tax Rates and Regulations

The primary reasons for the policy changes include:

• Inflation: Adjusting rates to reflect the current economic environment.
• Environmental Considerations: Higher rates for older, less fuel-efficient vehicles to promote eco-friendly transportation.
• Revenue Needs: Ensuring sufficient funds for public infrastructure projects.

Impact on Economy and Vehicle Market

These changes have had a noticeable impact on the broader economy and the vehicle market:

• Vehicle Sales: Potential increase in demand for newer, more fuel-efficient vehicles.
• Consumer Behavior: Shift towards online payment methods due to enhanced convenience.
• Revenue Generation: Increased government revenue, aiding in better public services and infrastructure development.

Token Tax Rates in Punjab

Token tax rates in Punjab vary based on the type and engine capacity of the vehicle. The rates are reviewed periodically to ensure they align with economic conditions.

Breakdown of Token Tax Rates by Vehicle Category

Token Tax on Motorcycle and Motor Cars

Engine Capacity in CC	Token Tax	Income Tax		Professional Tax
		Filer	Non-Filer
Motor Cycle at time of Registration	1500	–	–	200
Motor Car
1000CC and Below	1,500	10,000	30,000	200
Between 1000CC to 1199CC	1,800	1,500	4,500	200
Between 1200CC to 1299CC	1,800	1,750	5,250	200
1300CC	1,800	2,500	7,500	200
Between 1301CC to 1499CC	6,000	2,500	7,500	200
1500CC	6,000	3,750	11,250	200
Between 1501CC to 1599CC	9,000	3,750	11,250	200
Between 1600CC to 1999CC	9,000	4,500	13,500	200
2000CC	9,000	10,000	30,000	200
Between 2001CC to 2500CC	12,000	10,000	30,000	200
2500CC and above	15,000	10,000	30,000	200

Punjab Token Tax on Commercial Vehicles

Description of Motor Vehicles	Token Tax
Vehicles (including delivery vans) with maximum laden capacity upto 4060 kg	PKR. 1,000/-
Vehicles with maximum laden capacity between 4,060 Kg to 8,120	PKR. 2,200/-
Vehicles with laden capacity between 8,120 Kg to 12,000 Kg	PKR. 4,000/-
Vehicles with long trailers or other vehicles with maximum laden capacity between 12,000 Kg to 16,000 Kg	PKR. 6,000/-
Vehicles with long trailers or other vehicles with maximum laden capacity exceeding 16,000 Kg	PKR. 8,000/-
Vehicles drawing other trailers Appropriate rate out of the rates at (a) to (f) above applicable to the vehicle plus	PKR. 400/-
Commercial Tractor
Commercial Tractor Tax	Token Tax	Professional Tax	Income Tax
	2,600/-	200	7200

Token Tax on Commercial Passenger Vehicles

Type of Motor Vehicles	Annual Rate of Tax
Motor Cab Rickshaws/ Motor Cycle Rickshaw with seating capacity of not more than 3 persons or 6 person	Rs.3,000/- lump sum once
Vehicles playing for hire with 60% of the total length of the route falling within the limits of a Corporation, Municipality or Cantonment.	Rs.140/- per seat
Passenger vehicle with a seating capacity of more than six people operating exclusively for hire within the boundaries of a Corporation, Municipality, or Cantonment.
Without Air Conditioned	Rs.180/- per seat per annum
Air Conditioned	Rs.300/- per seat per annum

Token Tax on Commercial Motor cabs

Description of Motor Vehicles	Annual Rate of Tax
Motor cabs with a seating capacity of 6 or below 6 persons
Below 1000cc	Rs. 700/-
Between 1000cc to 1300cc	Rs. 1,200/-
Between 1300cc to 1500cc	Rs. 2,000/-
Between 1500cc to 2000cc	Rs.3,000/-
Between 2000cc to 2500cc	Rs.4,000/-
2500cc Above	Rs.5,000/-
More than 6 persons
Non-Air Conditioned	Rs.180/- per seat
Air Conditioned	Rs. 300/- per seat

Regional Variations in Token Tax Rates within Punjab

While the core rates remain consistent across Punjab, some variations may exist based on regional policies. For instance, metropolitan areas may have slightly higher rates due to increased infrastructure costs.

How to Calculate Token Tax Online in Punjab

Calculating your token tax online is a straightforward process. Follow these steps to ensure you pay the correct amount.

Step-by-Step Guide to Calculating Token Tax Online

1. Visit the  Punjab Excise & Taxation Department’s Official Website.
2. Go to the Token Tax Calculator Tool.
3. Enter Your Vehicle Details:
   • Registration number
   • Engine capacity
   • Vehicle category
4. View the Calculated Amount:
   • The tool will display the token tax due for your vehicle.
5. Proceed to Payment:
   • If you click on proceed amount you will be directly redirected to Punjab E  pay website for online token tax payment.

Addressing Common Errors and Issues

If you encounter issues:

• Ensure all details are correctly entered.
• Check your internet connection.
• Contact the Excise Department’s helpline if the problem persists.

How to Pay Car Token Tax Online in Punjab Using ePay Punjab

Paying your car token tax in Punjab has become more convenient with the introduction of the ePay Punjab app. Once you’ve calculated your token tax, follow these steps to pay through the ePay Punjab app. For information on other payment methods and options, check out our smart card status check guide

1. Download the ePay Punjab App
   • Install the ePay Punjab app from the Google Play Store or Apple App Store on your smartphone.
2. Register on the App
   • Open the app and register by providing your mobile number, name, and CNIC number.
3. Log In to Your Account
   • Once registered, log in to the app using your credentials.
4. Navigate to Excise and Taxation
   • In the app’s main menu, select the “Excise and Taxation Department” option.
5. Select Token Tax
   • Tap on the “Token Tax” option to proceed with your payment.
6. Enter Your Vehicle Details
   • Input your vehicle registration number and tap the search button. The app will fetch the details related to your vehicle, including the token tax amount due.
7. Generate a Challan
   • Click on “Generate Challan.” The system will create a challan and provide you with a unique PSID number.
8. Choose Your Payment Method
   • Use the PSID number to make the payment. You can pay via:
     • Mobile Banking: Access your bank’s mobile app and use the PSID number for payment.
     • Online Banking: Log into your bank’s online portal and enter the PSID number.
     • 1Link ATM: Visit an ATM, select “Bill Payment,” and enter the PSID number.
     • Bank Counter: Present the PSID number at a participating bank counter for payment.
9. Receive Payment Confirmation
   • After completing the payment, you will receive a confirmation receipt within the app. This receipt serves as proof of payment.

By following these steps, you can efficiently manage your car token tax payments through the ePay Punjab app, saving time and avoiding the hassle of visiting government offices.

Consequences of Not Paying Token Tax

Failing to pay token tax can lead to severe penalties and legal actions.

Penalties and Fines for Non-Compliance

Non-payment can result in fines ranging from PKR 2,000 to PKR 10,000, depending on the delay. Repeat offenders may face higher penalties.

Legal Implications of Non-Payment

In extreme cases, legal action may be taken, leading to vehicle confiscation or even legal proceedings.

Examples of Penalties

For example, if you delay payment by 30 days, a fine of PKR 5,000 could be imposed, in addition to the overdue tax amount.

Token Tax for Used Vehicles

When purchasing a used vehicle, understanding the token tax implications is crucial.

Process of Transfer of Ownership

The token tax must be up to date before ownership transfer. The new owner is responsible for ensuring all dues are cleared.

Token Tax Implications for New Owners

The new owner must pay the token tax from the date of transfer. Any unpaid dues by the previous owner may result in fines.

Calculating and Paying Token Tax for Used Vehicles

You can calculate the token tax for a used vehicle using the Token Tax calculator or check the table we provide in the above section for both new and used vehicles.Ensure you update the vehicle’s ownership details with the Excise Department to avoid issues.

Frequently Asked Questions About Token Tax in Punjab