The Punjab government has announced a 10% discount on vehicle token tax payments made through the ‘ePay Punjab’ app, providing a significant benefit for vehicle owners.
This initiative aims to encourage the use of the app for tax payments, reducing the need to stand in long queues at government offices.
The discount on token tax payments through the ePay Punjab app is available until September 30, 2024. Vehicle owners are encouraged to take advantage of this offer by using the app to pay their taxes quickly and conveniently from their phones.
Token tax on new vehicles
In the fiscal budget for 2024-25, the provincial government has introduced a new token tax policy for vehicle owners. Under this policy, if a vehicle has an engine power of up to 1000 cc, the new owner must pay the entire token tax upon transfer of ownership.
Annual token tax
The new regulations state that the annual vehicle token tax will now be based on the invoice value of the vehicle rather than engine power (cc). Vehicles with an engine capacity between 1000 cc and 2000 cc will be taxed at 0.2% of the invoice value annually. For vehicles with an engine capacity above 2000 cc, the tax rate will be 0.3% of the invoice value per annum.
Lifetime token tax
The lifetime token tax for vehicles up to 1000 cc has been increased from Rs 15,000 to Rs 20,000. If ownership of a 1000 cc vehicle is transferred, the new owner will be required to pay the lifetime token tax. A 10% annual discount will be applied if the transfer occurs within 10 years. However, no lifetime token tax will be levied if the transfer takes place after 10 years.
