01 At a glance

Car token tax by province (2026-27)

Before income tax. Section 234 income tax is added in every province, doubled for non-filers.

Engine sizePunjabSindhIslamabad
Up to 1000ccRs 20,000 onceRs 20,000 once (new)Rs 20,000 once
1001–2000cc0.3% of invoiceRs 2,000–Rs 4,5000.25% of invoice
Above 2000cc0.4% of invoiceRs 5,000–Rs 7,0000.35% of invoice

Yearly unless marked "once". Sindh cuts the tax to 75% after 10 years and 50% after 15.

02 Answers

Questions about vehicle tax

The basics of token tax in Pakistan.

Calculate token tax

What is token tax?

Token tax is the yearly motor vehicle tax charged by your province's Excise and Taxation department. Excise also collects advance income tax for FBR under section 234 with it.

Did token tax go up in 2026-27?

In Punjab, yes: 0.3% of the invoice value for 1001–2000cc cars (was 0.2%) and 0.4% above 2000cc (was 0.3%). Islamabad moved from fixed amounts to 0.25% and 0.35% of invoice value. Sindh's car rates did not change.

Who collects token tax?

The Excise, Taxation and Narcotics Control department of each province, and the Excise and Taxation department of the Islamabad Capital Territory.

Do small cars pay token tax every year?

No. In Punjab and Islamabad, cars up to 1000cc pay Rs 20,000 once. In Sindh, new cars up to 1000cc pay Rs 20,000 once, and registered ones can choose Rs 1,500 a year or a one-time amount.