The Punjab Government has increased the token tax on all vehicles following the new budget, that will be effective from July 1, 2024.
Under the updated policy, the token tax on the vehicles will be determined by the value of the vehicle intead of the engine capacity of the vehicle.
The token tax on the vehicle consists of engine capacity between 1,000cc to 2,000cc, is set at 2% of the invoice value while the vehicle with engine capacity obove 2,000cc, the tax will be 3% of the invoice value.
Futhermore, the life time token for the vehicle with engine capacity more than 1,000cc, has increased from 15,000 to 20,000. Additionally, after the transfer of ownership of vehicle up to 1,000cc, the new owner have to pay the full token tax again.
If the transfer of ownership takes place within 10 years of buying a car, the new owner must pay lifetie token with 10% annual discount, after 10 years taken tax is not applicable.
It is anticipated that, this policy will bring a significant impact on car owners, espacially for the used car market.
The initiative aims to increase tax revenue and enhance transparency in motorvehicle transactions. Nodoubt it will bring an extra economic burden on vehicle owners, particularly those who buy expensive vehicles.
