What Is the Annual Token Tax on Cars in Pakistan?

Annual token tax is a recurring motor vehicle tax that vehicle owners may need to pay to the relevant provincial or territorial Excise and Taxation authority to keep their vehicle's tax record up to date.

In Pakistan, there is no single nationwide annual token-tax amount for every car. Motor vehicle taxation is administered under provincial or territorial laws, and the amount can depend on the province where the vehicle is registered, engine capacity, vehicle category, seating capacity, invoice/value of the vehicle and other applicable rules.

This is particularly important for car owners in Punjab because the province has changed the tax structure for some private vehicles. The current Punjab Excise schedule for 2026–27 lists fixed amounts for several engine-capacity categories, while certain categories use a percentage of the vehicle's invoice price.

Therefore, if someone asks, "How much is the annual token tax on a car in Pakistan?", the correct answer depends on where the car is registered and which tax schedule applies.

This guide explains the annual token-tax concept, current Punjab rates, how the system differs between jurisdictions, how to calculate the amount, rebates, payment timing, and the difference between token tax and other vehicle charges.

What Is Token Tax?

Token tax is a motor vehicle tax imposed by the relevant government authority on vehicles.

The term "token" historically referred to a ticket or indication that the motor vehicle tax had been paid. The applicable motor vehicle taxation laws define the tax and the token as evidence of payment or exemption.

Today, vehicle tax records are increasingly handled through computerized Excise systems and online payment services, but people commonly continue to use the term token tax for the annual motor vehicle tax.

For a private car, the amount is not necessarily the same as the vehicle's registration fee.

For example:

Registration fee is associated with registering a vehicle.

Token tax is a recurring motor vehicle tax payable according to the applicable schedule.

These are separate charges.

Is Token Tax the Same Throughout Pakistan?

No.

Pakistan does not have one universal annual token-tax rate for all private cars.

The relevant rules can differ between:

• Punjab

• Sindh

• Khyber Pakhtunkhwa

• Balochistan

• Islamabad Capital Territory

A car registered in Lahore, for example, is subject to the applicable Punjab motor vehicle tax system. A car registered in Karachi is subject to Sindh's system, while a vehicle registered in Islamabad follows the applicable Islamabad Capital Territory rules.

This means an amount quoted for a Punjab car should not automatically be presented as the token tax for a car registered elsewhere.

Punjab Annual Token Tax for Cars

Punjab currently publishes a specific schedule for Motor Vehicle Tax (Token Tax) for 2026–27.

For private motor cars, the published schedule includes the following amounts and percentage-based categories:

These rates are published by the Punjab Excise & Taxation Department under its current Motor Vehicle Tax schedule.

Important point about the Punjab table

The table contains both fixed amounts and percentage-based amounts.

For example, an eligible 1500cc private car is listed at PKR 6,000, while the 1001–1199cc category is listed as 0.3% of invoice price.

Similarly, the 2001–2500cc category is listed at 0.4% of invoice price.

Therefore, it is not correct to assume that every Punjab car simply pays a fixed amount according to its engine capacity.

What Is the Token Tax on a 1000cc Car in Punjab?

According to Punjab's current 2026–27 published schedule, the token tax for a 1000cc private motor car is PKR 20,000.

This is the token-tax amount shown in the Punjab schedule and should not be confused with:

• registration fee,

• withholding tax,

• professional tax,

• number-plate charges,

• smart-card charges,

• transfer fee,

• or other government dues.

These can be separate charges.

What Is the Token Tax on a 1000cc Car?

The answer depends on the registration jurisdiction.

For a private 1000cc car in Punjab, the currently published 2026–27 token-tax amount is PKR 20,000.

However, you should not automatically use PKR 20,000 for a 1000cc car registered in another province.

Different provinces and territories have their own motor vehicle taxation arrangements.

What Is the Token Tax on a 1300cc Car in Punjab?

For a private 1300cc car, Punjab's current 2026–27 schedule lists:

PKR 1,800

as the token-tax amount.

This is an example of why vehicle owners should check the exact engine-capacity category rather than assuming that a larger engine always means a proportionally higher token tax.

The categories are determined by the applicable official schedule.

What Is the Token Tax on a 1500cc Car in Punjab?

For a private 1500cc car, the Punjab 2026–27 schedule lists:

PKR 6,000

as the token tax.

The amount is separate from any applicable federal or provincial taxes and other vehicle-related charges.

What Is the Token Tax on a 1600cc Car in Punjab?

A private car in the 1501–1599cc category is listed at PKR 9,000.

A car in the 1600–1999cc category is also listed at:

PKR 9,000

under Punjab's 2026–27 schedule.

What Is the Token Tax on a 2000cc Car in Punjab?

For a private 2000cc car, Punjab's current published token-tax rate is:

PKR 9,000 per year

for the 2026–27 schedule.

The 2001–2500cc category is different and is calculated at 0.4% of invoice price.

What Is the Token Tax on a 2001–2500cc Car in Punjab?

For a private vehicle between 2001cc and 2500cc, Punjab currently lists:

0.4% of invoice price

for the 2026–27 token-tax schedule.

For example, if the applicable invoice price were PKR 10,000,000:

PKR 10,000,000 × 0.4% = PKR 40,000

This is only an illustrative calculation. The actual amount should be calculated using the value and rules accepted by the Excise authority.

What Is the Token Tax on a Car Above 2500cc in Punjab?

For a private car with engine capacity above 2500cc, the Punjab 2026–27 schedule lists:

PKR 15,000

as the token-tax amount.

Again, this is the published token-tax amount and should not be confused with other taxes that may apply to a vehicle.

Why Did Punjab Change the Token-Tax Structure?

Punjab changed the tax base for certain private vehicles under recent finance legislation.

The Punjab Excise Department's official newsletter explains that the Punjab Finance Act 2024 changed the token-tax base from engine capacity to invoice value for certain private vehicles. It states that private vehicles from 1001cc to 2000cc were subject to a 0.2% invoice-value basis under the earlier change, while vehicles above 2000cc were subject to a 0.3% invoice-value basis. The department's currently published 2026–27 table now shows the applicable current rates, including 0.3% for 1001–1199cc and 0.4% for 2001–2500cc.

This illustrates an important point:

Do not calculate current token tax using an old chart simply because the engine-capacity categories look familiar.

Always check the latest official schedule.

Does Token Tax Depend on the Province?

Yes.

This is one of the most important things to understand.

The motor vehicle tax system is administered by the relevant jurisdiction. Consequently:

• Punjab has its own schedule.

• Sindh has its own schedule.

• KP has its own schedule.

• Balochistan has its own applicable rules.

• Islamabad Capital Territory has its own system.

For example, Sindh's official Excise website provides a motor vehicle tax section and a vehicle-registration cost calculator. Its online calculator separates registration fee, motor vehicle tax, luxury tax, smart-card charges, late-registration charges and other components.

This demonstrates why the terms registration fee, motor vehicle tax and other vehicle charges should not be mixed together.

Token Tax in Sindh

Sindh has its own Motor Vehicle Tax system.

The Sindh Excise & Taxation Department states that motor vehicle tax is imposed under the Sindh Motor Vehicle Taxation Act, 1958 and the Motor Vehicle Rules, 1959. Its official website provides information and an online calculator for vehicle-related costs.

Sindh's official calculator allows users to enter information including:

• invoice date,

• vehicle price,

• vehicle type,

• engine capacity,

• manufacturing status,

• taxpayer status,

• hire-purchase status,

• and the period up to which tax is to be paid.

The calculator then separates charges such as registration fee, motor vehicle tax, luxury tax, smart-card charges, late-registration charges and transfer fees.

Because the Sindh calculation can depend on vehicle details and the payment period, a Sindh vehicle owner should use the official calculator rather than applying Punjab's token-tax table.

Token Tax in Khyber Pakhtunkhwa

Khyber Pakhtunkhwa also has its own Motor Vehicles Taxation Act and schedule.

The official KP legislation defines the motor vehicle tax and provides for payment through the applicable licensing system. The published schedule contains separate rates for private motor cars and other categories.

For private motor cars and jeeps with seating capacity of more than three but not more than six persons, the published schedule lists:

• Up to 1000cc: PKR 500

• More than 1000cc up to 1300cc: PKR 1,000

• More than 1300cc up to 1500cc: PKR 1,800

• More than 1500cc up to 2500cc: PKR 2,500

• Above 2500cc: PKR 5,000

The same schedule contains different treatment for vehicles with different seating capacities and commercial/passenger uses.

Because the available official legislation page includes rates that originate from amendments over time, readers should verify the currently applicable amount with KP Excise before making a payment.

Token Tax in Islamabad

Islamabad Capital Territory also has an annual token-tax system.

The Islamabad Excise FAQ states that annual token tax can be paid through the specified payment arrangements and says that annual token tax is preferably deposited in July, when a 10% rebate is stated to be available.

However, Islamabad's token-tax rates and payment rules should be checked through the current Islamabad Excise system rather than applying Punjab's or KP's rates.

This is particularly important because an Islamabad-registered vehicle is not automatically subject to Punjab's token-tax schedule simply because the owner lives or works in Punjab.

Is Token Tax Paid Every Year?

In jurisdictions where the vehicle is subject to annual token tax, yes, the tax is generally payable according to the relevant annual schedule.

However, the exact payment method and whether a particular vehicle can pay a lifetime or lump-sum tax can vary.

For example, Punjab provides a lifetime token arrangement for certain motorcycles and vehicles up to 1000cc under specified circumstances, particularly at transfer, while its published annual token-tax schedule applies separately.

Therefore, "annual token tax" and "lifetime token tax" should not be treated as the same thing.

Is There a Rebate on Annual Token Tax?

Some jurisdictions provide a rebate when annual tax is paid early.

Punjab's current Excise information states that a 10% rebate of annual token tax is allowed if the tax for the whole year is paid on or before 31 August of the financial year.

For example, if the applicable annual token tax is PKR 10,000 and the taxpayer qualifies for the full 10% rebate:

PKR 10,000 × 10% = PKR 1,000 rebate

The payable amount would then be:

PKR 9,000

This example assumes the vehicle and payment meet the conditions for the rebate.

Because payment dates and rebate rules can change, taxpayers should confirm the current deadline before relying on a rebate.

What Happens If Token Tax Is Not Paid?

Failure to pay motor vehicle tax can result in arrears and potentially penalties or other enforcement action under the applicable provincial or territorial law.

For example, the KP Motor Vehicles Taxation Act provides for penalties in cases where a person keeps a motor vehicle without the required licence or fails to pay tax within the prescribed period.

The exact consequences depend on the jurisdiction and circumstances.

A vehicle owner should therefore avoid assuming that unpaid token tax simply disappears or can be ignored.

Is Token Tax the Same as Registration Fee?

No.

This is a common misunderstanding.

Registration fee

Registration fee is generally associated with registering the vehicle for the first time.

Token tax

Token tax is a motor vehicle tax payable under the applicable tax schedule.

For example, Punjab publishes separate tables for new registration rates and token tax/Motor Vehicle Tax.

A new vehicle may therefore have to deal with several different government charges during registration, while an already registered vehicle may subsequently have recurring token-tax obligations.

Is Token Tax the Same as Withholding Tax?

No.

Withholding tax is a separate tax.

Punjab's Excise Department publishes separate withholding-tax information for vehicles, with rates depending on factors such as engine capacity and filer/non-filer status.

Therefore, a person should not add withholding tax into the token-tax amount and call the combined figure "token tax."

When estimating the total cost of buying or registering a vehicle, each charge should be identified separately.

Is Token Tax the Same as Transfer Fee?

No.

A transfer fee is generally associated with transferring ownership of a registered vehicle from one person to another.

Token tax is the applicable motor vehicle tax.

For example, Punjab publishes a separate transfer-fee schedule for motorcycles, cars and other vehicles.

If you are buying a used car, you may have to deal with ownership-transfer charges as well as any outstanding token tax.

What Is the Difference Between Annual Token Tax and Lifetime Token Tax?

These are different arrangements.

Annual token tax

The vehicle owner pays the applicable motor vehicle tax for the relevant year or period.

Lifetime token tax

Under certain provincial rules, a vehicle may be subject to a one-time or lifetime tax instead of recurring annual payment.

Punjab, for example, publishes a lifetime-token arrangement for certain motorcycles and vehicles up to 1000cc under specified transfer circumstances.

Not every vehicle automatically qualifies for lifetime token tax.

The applicable rules depend on the jurisdiction, vehicle category, date of registration and other factors.

How Do You Check Your Car's Token Tax?

The exact method depends on where the car is registered.

A general process is:

1. Identify the province or territory where the vehicle is registered.

2. Visit the relevant official Excise and Taxation website.

3. Look for the motor vehicle tax, token-tax or online vehicle services section.

4. Enter the required vehicle information.

5. Check the tax status and outstanding amount.

6. Confirm the applicable financial year.

7. Check whether any rebate is available.

8. Check whether previous token tax is outstanding.

9. Confirm any additional late-payment amount.

10. Use the authorized payment method provided by the department.

Do not rely only on a private website, social-media post or an old fee chart.

Can Token Tax Be Paid Online?

Online payment availability depends on the relevant province or territory.

Some Excise departments provide online vehicle services and digital payment facilities, while others may have specific bank or office payment arrangements.

Punjab, for example, provides online government payment services through its digital systems, while other jurisdictions have their own arrangements.

Before paying online, make sure you are using an official government portal and that the payment reference belongs to the correct vehicle.

What Information Do You Need to Calculate Token Tax?

The required information can vary, but commonly relevant details include:

• Vehicle registration number

• Engine capacity

• Vehicle type

• Province/territory of registration

• Private or commercial status

• Invoice/value information where applicable

• Previous tax-payment status

• Financial year

• Filer/non-filer status where a separate tax is being calculated

• Vehicle age in jurisdictions where age affects the calculation

For Punjab's current schedule, engine capacity and invoice price are particularly important for the categories where tax is calculated as a percentage of invoice value.

Example: Calculating Punjab Token Tax

Suppose you own a private car registered in Punjab.

If it is:

1500cc

The current Punjab 2026–27 schedule lists:

PKR 6,000

as the annual token tax.

Now consider a different vehicle:

2001–2500cc

The applicable rate is:

0.4% of invoice price

If the applicable invoice price were PKR 8,000,000:

PKR 8,000,000 × 0.4% = PKR 32,000

This is an example of the calculation method. The actual amount should be confirmed through the official Excise assessment/payment system.

Does the Age of a Car Affect Token Tax?

The answer depends on the jurisdiction and applicable tax rules.

Some vehicle-tax systems use vehicle age, registration date or depreciation in particular calculations, while others publish fixed annual rates or percentage-based rates.

For example, Punjab has separate provisions concerning lifetime token tax and depreciation in certain transfer situations.

Therefore, an owner should not assume that every province calculates annual token tax solely from engine capacity.

Does Filer Status Affect Annual Token Tax?

Usually, filer/non-filer status is more directly relevant to certain federal taxes such as withholding or advance tax than to the basic provincial token-tax rate.

For example, Punjab separately publishes withholding-tax rates based on filer and non-filer status.

Therefore:

Token tax ≠ withholding tax

When checking a vehicle's total payable amount, keep these components separate.

Do Electric Cars Pay Token Tax?

Electric vehicles may receive tax exemptions or concessions, depending on the jurisdiction and applicable government policy.

Punjab currently states that 95% of Motor Vehicle Tax is exempted for electric vehicles, alongside a 95% exemption from registration fee, subject to the applicable rules.

Because EV policies can be revised, an electric-vehicle owner should confirm the current concession before calculating the amount.

Why Should You Pay Token Tax on Time?

Paying the applicable vehicle tax on time can help you:

• Keep the vehicle's tax record updated.

• Avoid accumulated arrears.

• Avoid applicable penalties.

• Make future ownership transfer easier.

• Maintain proper vehicle documentation.

• Take advantage of an available early-payment rebate where applicable.

• Avoid problems caused by outstanding government dues.

Before selling a used vehicle, it is also sensible to check whether any token-tax amount remains outstanding.

What Should You Check Before Paying Token Tax?

Before making a payment, check:

1. Vehicle registration number

Make sure the record belongs to your vehicle.

2. Engine capacity

Check the correct cc category.

3. Registration jurisdiction

Confirm whether the vehicle is registered in Punjab, Sindh, KP, Islamabad or another jurisdiction.

4. Tax year

Make sure you are paying for the correct financial year.

5. Outstanding dues

Check whether previous token tax remains unpaid.

6. Rebate

Check whether an early-payment rebate is available.

7. Penalty

Check whether late-payment charges apply.

8. Payment reference

Keep the official receipt or digital payment confirmation.

Common Mistakes About Car Token Tax in Pakistan

Mistake 1: Assuming one national rate

There is no single rate for every car in Pakistan.

Mistake 2: Using an old Punjab chart

Punjab's token-tax structure has changed, and its current 2026–27 schedule should be checked.

Mistake 3: Confusing registration fee with token tax

These are separate charges.

Mistake 4: Including withholding tax in token tax

Withholding tax is a separate tax.

Mistake 5: Ignoring the registration jurisdiction

A Punjab rate cannot automatically be applied to a Sindh or Islamabad vehicle.

Mistake 6: Assuming every vehicle pays annually

Some vehicles or categories may have lifetime or different tax arrangements.

Mistake 7: Relying on unofficial calculators

An unofficial calculator may use an outdated rate.

What Is the Current Punjab Token Tax Schedule for 2026–27?

For quick reference, the Punjab Excise Department currently publishes the following private-car schedule:

These figures are specifically the Punjab Motor Vehicle Tax/Token Tax schedule for 2026–27 published by the Punjab Excise & Taxation Department.

They should not be presented as a nationwide Pakistan rate.

Final Answer: How Much Is Annual Token Tax on Cars in Pakistan?

There is no single annual token-tax amount for cars throughout Pakistan.

The amount depends on the vehicle's registration jurisdiction and the applicable tax schedule.

For Punjab in 2026–27, the current published private-car token-tax schedule includes:

• 1000cc — PKR 20,000

• 1001–1199cc — 0.3% of invoice price

• 1200–1299cc — PKR 1,800

• 1300cc — PKR 1,800

• 1301–1499cc — PKR 6,000

• 1500cc — PKR 6,000

• 1501–1599cc — PKR 9,000

• 1600–1999cc — PKR 9,000

• 2000cc — PKR 9,000

• 2001–2500cc — 0.4% of invoice price

• Above 2500cc — PKR 15,000.

For Sindh, KP, Islamabad and Balochistan, the applicable rules can differ. Therefore, car owners should check the official Excise authority for the jurisdiction where their vehicle is registered.

The most important distinction is that annual token tax is not the same as vehicle registration fee, transfer fee or withholding tax. These charges should be calculated separately.

Government tax schedules can change through new finance laws, notifications and departmental updates, so readers should verify the current amount with the relevant official Excise authority before making payment.

Guide Information

Step-by-Step Process

1. Identify the province or territory where the vehicle is registered.

2. Confirm that you are checking token tax rather than registration fee.

3. Note the vehicle registration number.

4. Check the vehicle's engine capacity.

5. Determine whether the vehicle is private or commercial.

6. Visit the relevant official Excise website.

7. Open the motor vehicle tax or token-tax section.

8. Look for the latest applicable tax schedule.

9. Confirm the current financial year.

10. Check the vehicle category.

11. Check the applicable engine-capacity category.

12. Determine whether the tax is fixed or percentage-based.

13. If required, obtain the applicable invoice or vehicle-value information.

14. Check whether any previous token tax is outstanding.

15. Check whether a late-payment charge applies.

16. Check whether an early-payment rebate is available.

17. Check whether the vehicle qualifies for any exemption or concession.

18. Check whether the vehicle is subject to lifetime token tax instead of annual tax.

19. Calculate the basic token-tax amount where a manual calculation is required.

20. Compare the calculated amount with the official government assessment.

21. Check whether any other vehicle tax is shown separately.

22. Do not combine withholding tax with token tax.

23. Do not combine registration fee with token tax.

24. Check the payment deadline.

25. Select an authorized payment method.

26. Generate the required payment reference or challan if applicable.

27. Make the payment through the authorized channel.

28. Confirm that the payment was successfully processed.

29. Save the official payment receipt.

30. Check the updated vehicle tax status.

31. Confirm that the correct financial year has been credited.

32. Check whether any previous outstanding amount remains.

33. Keep the payment receipt with the vehicle documents.

34. Record the next expected token-tax payment date.

35. If a rebate was claimed, confirm that the rebate was correctly applied.

36. If the vehicle has changed ownership, check the tax record after transfer.

37. If the vehicle has moved between jurisdictions, confirm which authority is responsible for the tax.

38. Contact the relevant Excise office if the online record is incorrect.

39. Do not rely on unofficial or outdated token-tax charts.

40. Recheck the official schedule before making the next annual payment.