Punjab Token Tax 2026-27: What Changed and How to Pay

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Punjab raised the token tax on private cars above 1000cc for 2026-27, the first major change in about two decades, according to news reports. This guide explains what was reported, which parts are still unconfirmed, and how to pay your token tax online through the ePay Punjab app.

Last checked: 14 November 2026. Tax rules change and reports differ, so confirm your own amount in the ePay Punjab app or with the Excise department. This page is general information, not tax advice.

What changed

Punjab presented its 2026-27 budget in mid-June 2026. The Finance Bill raised the token tax on larger private cars and on commercial loader vehicles, and the reports call it the biggest token tax increase in nearly twenty years.

For private cars, token tax above 1000cc is charged as a percentage of invoice value. The reported changes are:

  • 1000cc to 2000cc: from 0.2% to 0.3% of invoice value, according to most reports. One report differs (see “What is still unconfirmed” below).
  • Above 2000cc: from 0.3% to 0.4% of invoice value.
  • Electric vehicles: the concession was reported as rising from 95% to 99%, on the token tax part of the bill only.
  • Commercial loader vehicles: reported to roughly triple. For example, the 4,060 kg to 8,120 kg laden-weight band was reported to rise from Rs. 2,200 to Rs. 6,600 a year.

The same Finance Bill also made motor vehicle dealers withholding agents, so they collect and deposit taxes, duties and fees at the point of sale. That affects people buying a vehicle from a dealer, not the yearly token you pay as an owner.

What is still unconfirmed

  • Final approval. In June, ProPakistani described the rates as proposals that would take effect after the provincial assembly approved them. A PakWheels guide dated 15 July 2026 lists them as the new FY2026-27 rates. We did not find an official Excise notice or a report of the final vote, so treat the percentages above as reported, not officially confirmed.
  • The 1000cc to 2000cc rate. ProPakistani, TechJuice and PakWheels give 0.3% of invoice value, up from 0.2%. Dunya News and Kashmir English describe a rise of 0.1 percent, which fits 0.3%. The Tribune reported the rate falling to 0.1%. Check the amount shown in ePay Punjab for your vehicle.
  • Fixed amounts for smaller cars and motorcycles. Reports we found do not agree, and some still show older schedules. This page does not list them. Check your own amount in the app.
  • What the bill includes. One guide mixes advance tax and professional tax in its description of the bill, so read your own challan line by line.

The 10% rebate has ended

Punjab offered a 10% discount on token tax for payments made on or before 31 August 2026, through ePay Punjab. That date has passed, so the discount no longer applies to new payments. Late penalties may apply after the due date. The reports we found do not state the penalty amounts.

How the percentage works

This example uses made-up numbers to show the size of the change. It is not your tax amount.

Take a car with an invoice value of Rs. 3,000,000 in the 1000cc to 2000cc band. At 0.2% the token tax part is Rs. 6,000, and at 0.3% it is Rs. 9,000, a difference of Rs. 3,000 a year. For a car above 2000cc with the same invoice value, 0.3% is Rs. 9,000 and 0.4% is Rs. 12,000.

Your real bill can include other lines, so use the app for your exact figure.

How to pay Punjab token tax online

  1. Install the ePay Punjab app from the Google Play Store or the Apple App Store.
  2. Open Departments, choose Excise & Taxation Department, then tap Token Tax.
  3. Enter your vehicle registration number. The app shows the owner details and the date your token tax is paid up to.
  4. Check the tax breakdown and any rebate or charge shown.
  5. Generate the challan. It carries a 17-digit PSID, which can expire after a few days. If it does, create a new one.
  6. Pay in the app or through a bank channel that accepts the PSID, such as an ATM, internet or mobile banking, or a 1Link member bank branch.
  7. Keep the receipt. After payment, the “paid up to” date in the app moves forward by one year.

Common slips are a wrong registration number, an expired PSID and no saved proof of payment.

Buying, selling or budgeting

Token tax is one of several yearly costs of owning a vehicle. Add it up with fuel, servicing and insurance in our vehicle ownership cost calculator. If you are selling, the vehicle sale proceeds calculator shows the cash you would receive. If you are buying new, read our Auto Policy 2026-31 guide, which covers what is confirmed and what is not. For hybrids, see our hybrid car sales tax guide.

See also our vehicle token tax calculator and our Punjab token tax rebate page. This guide covers Punjab only. Other provinces and Islamabad have their own rates.

FAQs

Did Punjab raise token tax in 2026-27?

News reports say it raised the rates for private cars above 1000cc and for commercial loader vehicles. We have not seen an official notice, so check your own amount in the ePay Punjab app.

Is the 10% token tax rebate still available?

No. It applied to payments made on or before 31 August 2026.

Do electric vehicles pay token tax in Punjab?

Reports say electric vehicles get a 99% concession on the token tax part of the bill for 2026-27. Confirm the exact amount in the app.

Where can I pay my token tax?

You can pay through the ePay Punjab app, or with the challan PSID through banking channels that accept it.

Does this apply to Sindh, KP or Islamabad?

No. This page is about Punjab. Other provinces and Islamabad set their own rates.

Sources