Upcoming Token Tax Increase on Honda City in Punjab Effective July 2024

LAHORE – Mandatory Token Tax Payment for All Vehicles, Including Honda City, to Avoid Legal Issues

The Honda City is a popular car because it combines reliability, comfort, and performance. The newest model has sleek design lines, a push button start, keyless entry, and other exciting updates.

It is also featured with automated temperature control, a loaded steering wheel, modern LED headlights, LED taillights, and the newest multimedia system.

With a water-cooled, 4-stroke SOHC i-VTEC engine, it provides a strong mix of power and fuel efficiency, making it perfect for city driving and long trips.

Honda City Variants

In Pakistan, Honda City is available in five variants:

• Honda City 1.2L MT,
• Honda City 1.2L CVT
• Honda City 1.5LS CVT
• Honda City 1.5LAS MT
• Honda City 1.5LAS CVT.

Current Excise Token Tax on Honda City in Punjab

In Punjab, the excise department calculates the token tax based on the engine size of vehicles. There are different fixed tax amounts for various engine capacities. For vehicles with an engine capacity up to 1000cc, the lifetime token tax is Rs15,000. The tax rates are different for vehicles with engine capacities over 1000cc. Currently, it charges Rs1,800 per month in wake of token tax on Honda City 1.2, which has engine capacity of 1199cc while per month token tax rate stands at Rs6,000 for Honda City 1.5.

Expected Token Tax from July 2024 after Budget 2024-25

In the 2024-25 Budget, the Punjab government plans to set the token tax rate based on the vehicle’s value rather than its engine size. Since the prices of cars like the Honda City have gone up a lot in recent years, this change will lead to higher token tax rates.

The latest rates will be implemented from July 2024 if the budget proposals in this regard are approved by the provincial assembly.