The Punjab Excise Department has intensified its efforts to ensure compliance with vehicle token tax payments, issuing stern warnings to banks across Pakistan for their alleged negligence in fulfilling this obligation.
In a decisive move, the Director of Excise Lahore, Muhammad Asif, disclosed that the department has dispatched letters to the presidents of 26 prominent banks, demanding prompt payment of token taxes on leased vehicles. The missive underscores a significant backlog, with over 18,750 vehicles reportedly delinquent in their token tax payments.
According to Asif, the Excise Department has expressed grave concern over the banks' failure to fulfill their responsibility in ensuring timely token tax payments.
Despite collecting monthly installments, often with interest, on these leased vehicles, the banks have purportedly neglected to remit the requisite token taxes or prompt borrowers to do so.
The correspondence issued by the Excise Department serves as a final warning to banks, highlighting the imminent legal consequences of non-compliance. Notably, repeated notices have been issued prior to this, urging banks to fulfill their tax obligations without delay.
The ramifications for non-compliance are severe, as emphasized in the letter. The Excise Department has threatened to cancel the registration of delinquent vehicles and impose a 100% fine. Moreover, legal measures, including the potential confiscation of bank property, loom large as punitive actions against non-compliant banks.
Director Excise Lahore, Muhammad Asif, emphasized that a grace period of 14 days has been granted for the settlement of token taxes. Should banks adhere to this timeline, the Excise Department has assured the swift resolution of outstanding payments, including the cancellation of vehicle registrations.
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