The Punjab government has proposed significant increases in token taxes for commercial loader vehicles and private vehicles with larger engine capacities under the Punjab Finance Bill 2026.
According to the proposed legislation, token tax on commercial loader vehicles could increase threefold across multiple categories.
Under the new rates, commercial vehicles with a maximum laden capacity exceeding 4,060kg but not exceeding 8,120kg would pay an annual token tax of Rs6,600, compared to the current Rs2,200.
Vehicles with a capacity exceeding 8,120kg but not exceeding 12,000kg would see their annual tax rise from Rs4,000 to Rs12,000.
Similarly, long trailers and other vehicles with a capacity exceeding 12,000kg but not exceeding 16,000kg would pay Rs18,000 annually instead of the current Rs6,000.
For commercial vehicles exceeding 16,000kg, the proposed token tax would increase from Rs8,000 to Rs24,000 per year.
The bill also proposes higher token tax rates for private vehicles with larger engine capacities.
Under the proposed changes, vehicles with engine capacities exceeding 1,000cc but not exceeding 2,000cc would be taxed at 0.3 percent of their invoice value, up from the existing rate of 0.2 percent.
For vehicles with engine capacities above 2,000cc, the token tax rate would increase from 0.3 percent to 0.4 percent of invoice value.
The proposed measures are part of the Punjab Finance Bill 2026 and will take effect following approval by the provincial assembly.
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