Punjab Introduces New Motor Vehicle Token Tax: July 2024

• The Punjab government is introducing a new vehicle token tax system starting July 2024.
• The new tax will be based on the vehicle’s invoice price instead of engine capacity.
• The new system is designed to improve revenue collection and transparency.

The Punjab government has announced a new vehicle token tax system starting July 2024. Instead of the old fixed tax based on engine capacity, the new system will set the tax according to the vehicle’s invoice price.

For example, the token tax on motor cars has risen from Rs 15,000 to Rs 20,000 for the fiscal year 2025. Under the new system, vehicles with engine capacities between 1001cc and 2000cc will have a token tax of 0.2% of the invoice price, while those with engine capacities of 2001cc and above will face a tax of 0.3% of the invoice price. This update aims to make the tax system fairer and boost revenue for the provincial government.

[caption id="attachment_1070074" align="alignnone" width="482"] Punjab Introduces New Motor Vehicle Token Tax: July 2024[/caption]

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This change will affect vehicle owners throughout Punjab, making it important for them to understand the new token tax rates to ensure compliance and avoid penalties. The new system is designed to boost revenue collection and create a more transparent taxation process.