The Punjab Information Technology Board (PITB) has announced a 10% rebate on Motor Vehicle Token Tax for vehicle owners who pay their dues on or before August 31, 2026. The initiative is aimed at encouraging timely tax payments while promoting digital transactions through the province’s online payment system. Officials say the rebate will help motorists save money and avoid penalties for late payments.
According to the advisory, citizens who clear their token tax before the deadline will receive a 10% discount on the payable amount. Authorities emphasized that paying taxes on time not only provides financial savings but also ensures compliance with government regulations. Vehicle owners who delay payment may face late payment surcharges in addition to the standard tax amount.
The PITB has encouraged residents across Punjab to use the e-Pay Punjab platform for secure and convenient tax payments. The digital platform allows users to pay government taxes and fees online without visiting offices or standing in long queues. Officials said the initiative is part of the government’s broader effort to expand digital services and make public transactions faster, more transparent, and hassle-free.
Under the current token tax schedule, motorcycle owners are required to pay Rs1,500 at the time of registration. Motor cars with engine capacities of up to 1000cc are subject to a token tax of Rs20,000, while vehicles in the 1001cc to 1199cc category are charged 0.2% of the invoice price. Cars ranging from 1200cc to 1300cc are taxed at Rs1,800.
Vehicles with engine capacities between 1301cc and 1499cc are required to pay Rs6,000 in token tax, with the same amount applicable to 1500cc vehicles. Cars in the 1501cc to 1599cc and 1600cc to 1999cc categories are each charged Rs9,000. Similarly, 2000cc vehicles also carry a token tax of Rs9,000, while vehicles between 2001cc and 2500cc are taxed at 0.3% of their invoice price.
For vehicles with engine capacities above 2500cc, the applicable token tax has been set at Rs15,000 under the 2024–25 tax structure. The PITB has advised all eligible vehicle owners to take advantage of the limited-time rebate by making payments before August 31, 2026, through the e-Pay Punjab platform to enjoy savings and ensure timely compliance with tax regulations.
Also read: Islamabad Introduces New Token Tax for 1000cc+ Vehicles
