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Vehicle token tax 2026-27 in Punjab, Sindh and Islamabad

In short

Token tax for cars and motorcycles in 2026-27, the lifetime token, section 234 tax (double for non-filers) and how to pay online in Punjab, Sindh and Islamabad.

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Token tax (motor vehicle tax) is a provincial tax on every registered vehicle, collected by the province’s Excise Department. FBR’s section 234 advance income tax is collected with it. These are the 2026-27 rates for private cars and motorcycles in Punjab, Sindh and Islamabad, as of October 2026.

2026-27 rates at a glance

Car enginePunjabSindhIslamabad
Up to 1000ccRs 20,000 once (lifetime)Rs 20,000 onceRs 20,000 once
1001-2000cc0.3% of invoice price a yearRs 2,000 up to 1300cc, Rs 4,000 up to 1600cc, Rs 4,500 up to 2000cc a year0.25% of invoice price a year
Above 2000cc0.4% a yearRs 5,000 up to 2500cc, Rs 7,000 above, a year0.35% a year
MotorcycleRs 1,500 onceRs 1,800 up to 149cc, Rs 3,000 above, onceRs 1,000 up to 200cc, Rs 2,000 up to 400cc, Rs 5,000 above, once

In Punjab and Islamabad, token tax on a car above 1000cc is a percentage of its original invoice price; in Sindh it is a fixed amount by engine size. Electric vehicles are exempt from token tax in Islamabad, and Punjab waives 95% of their motor vehicle tax. Commercial vehicles have separate rates that are not covered here.

Section 234: filers and non-filers

With the token tax, the Excise office also collects advance income tax for FBR. It is charged every year on a car with an annual token, or once as a lump sum on a lifetime-token car. Some filer rates:

Under the Tenth Schedule this tax is doubled for anyone not on the Active Taxpayers List. The table on Punjab Excise’s website still shows older, three-times figures for non-filers; we use the current legal rate. Motorcycles up to 200cc, and cars used in Pakistan for more than ten years, are outside section 234. See the filer guide for how to get on the list.

Worked examples

These figures come from the same engine our token tax calculator uses. Lifetime-token cars pay once; the others pay every year.

ProvinceCarToken taxFiler totalNon-filer total
Punjab1000cc, Rs 32 lakhRs 20,000 (once)Rs 30,000Rs 40,000
Punjab1300cc, Rs 45 lakhRs 13,500Rs 16,000Rs 18,500
Punjab1800cc, Rs 90 lakhRs 27,000Rs 31,500Rs 36,000
Sindh1000cc, Rs 32 lakhRs 20,000 (once)Rs 30,000Rs 40,000
Sindh1300cc, Rs 45 lakhRs 2,000Rs 4,500Rs 7,000
Sindh1800cc, Rs 90 lakhRs 4,500Rs 9,000Rs 13,500
Islamabad1000cc, Rs 32 lakhRs 20,000 (once)Rs 30,000Rs 40,000
Islamabad1300cc, Rs 45 lakhRs 11,250Rs 13,750Rs 16,250
Islamabad1800cc, Rs 90 lakhRs 22,500Rs 27,000Rs 31,500

For example, a 1300cc car with an invoice price of Rs 45 lakh pays Rs 13,500 token tax in Punjab, and paying the whole year by 31 August saves Rs 1,350. For the registration fee and other taxes on a new car, use the car registration calculator.

How to pay online

Punjab: e-Pay Punjab

  1. Open epay.punjab.gov.pk or the e-Pay Punjab app and choose token tax under Excise & Taxation.
  2. Enter your registration number, check the amount due and generate the challan. It carries a PSID number.
  3. Pay the PSID through your bank’s app, an ATM or a bank branch.

After paying, you can look up the vehicle on Excise’s online verification of registered vehicles.

Sindh: Excise Quick Pay

  1. On Sindh Excise’s Quick Pay page, choose the vehicle type (4-wheeler or 2-wheeler) and enter your mobile and registration numbers.
  2. Check the current tax and any arrears, then generate a 12-digit PSID.
  3. Pay it under “1Bill Invoice/Voucher” in internet or mobile banking, at an ATM, through Easypaisa or over a bank counter. The department confirms payment by SMS.

Islamabad: Pak App or the Excise office

The Islamabad Excise Department says annual token tax for 2026-27 can be paid online through the Pak App mobile application or at its office in Sector H-9. It warns that only its own website and Pak App are official sources. Helpline: 051-111-383-383.

Late payment and common mistakes

Frequently asked questions

What is a lifetime token?

It is a one-time token tax paid at registration instead of a yearly payment. For 2026-27, cars up to 1000cc pay Rs 20,000 once in Punjab, Sindh and Islamabad, and motorcycles pay a one-time amount too (Rs 1,500 in Punjab). In Punjab, if a lifetime-token car or motorcycle is transferred within ten years, the new owner pays the lifetime amount again, less 10% for each financial year since registration.

Do non-filers pay more token tax?

Not on the provincial token tax itself. The difference is the section 234 advance income tax collected with it, which is doubled for anyone not on FBR’s Active Taxpayers List. For a 1300cc car that is Rs 2,500 a year for a filer and Rs 5,000 for a non-filer.

Is there a discount for paying early?

In Punjab, yes: the Excise Department allows a 10% rebate on the annual token tax if the whole year’s tax is paid on or before 31 August. We could not find an equivalent early-payment rebate on the Sindh or Islamabad Excise websites.

What is the penalty for paying token tax late?

The Islamabad Excise Department says annual token tax for 2026-27 should be paid before 1 October, after which a penalty applies, but its website does not state the amount. The Punjab and Sindh Excise websites do not publish a late-payment penalty for private cars, so ask the department before you pay a large arrear.

Does an old car pay less?

Section 234 income tax is not collected on a motor car that has been used in Pakistan for more than ten years. In Sindh the token tax also falls to 75% after ten years and 50% after fifteen; a ten-year-old 1300cc car in Sindh pays Rs 1,500 a year. Punjab and Islamabad charge a percentage of the original invoice price, so the amount does not fall with age.

Calculators for this guide

Sources

This guide explains the rules for general information. It is not official, legal or tax advice. Rules change, so check the official source or a qualified professional before acting. See how we check our information.

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