Punjab Excise Token Tax Rates for Cars

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Good news for car owners in Punjab: the Punjab Excise Token Tax Rates for Cars will remain unchanged in January 2026. The Punjab Excise and Taxation Department has officially confirmed that no new increase or revision has been introduced. This update brings relief to thousands of vehicle owners who were expecting higher charges at the start of the new year. Token tax will continue to be charged on the same engine-capacity-based system already in place across the province.

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Punjab Excise Token Tax Rates for Cars (January 2026)

Engine Capacity	Token Tax Rate
Up to 1000 CC	Rs 20,000 (fixed)
1001 – 1199 CC	0.2% of invoice price
1200 – 1599 CC	0.2% of invoice price
1600 – 1999 CC	0.2% of invoice price
2000 – 2500 CC	0.3% of invoice price
Above 2500 CC	0.3% of invoice price
Motorcycles	Rs 1,500 (one-time at registration)
Rate Status	Unchanged in Jan 2026

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What Is Token Tax and Why It Matters

Token tax is a mandatory provincial levy collected on registered vehicles in Punjab. It applies to motorcycles, cars, and commercial vehicles and is required to legally drive on public roads.

Why token tax is important:

Helps fund road infrastructure and maintenance
Supports transport administration and public services
Required for vehicle verification, resale, and transfer

In Punjab, token tax is administered by the Punjab Excise and Taxation Department and mainly calculated on engine capacity (CC) for private cars.

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Token Tax Status for January 2026 (Official Confirmation)

The Excise Department has confirmed that no changes have been made to the existing token tax structure for January 2026. The same rates applicable in December 2025 will continue.

Key highlights of the January 2026 update:

No new slab introduced
No increase in percentage-based rates
Fixed rate for cars up to 1000 CC remains unchanged
Motorbike token tax stays the same

This information is based on the official Punjab Excise website and verified through top Google search sources covering government notifications.

Punjab Token Tax Rates for Cars Explained Simply

Token tax for cars in Punjab follows a progressive system, meaning higher engine capacity vehicles pay more tax.

How the system works:

Cars up to 1000 CC pay a fixed amount
Cars above 1000 CC are charged a percentage of invoice price
Luxury and high-capacity vehicles fall into higher brackets

This ensures fairness and links the tax burden with vehicle value and usage.

Why Engine Capacity–Based Tax Is Used

The Punjab government uses engine-capacity-based taxation to balance affordability and fairness.

Main reasons behind this system:

Promotes fuel-efficient and smaller vehicles
Aligns tax with vehicle value and road usage
Creates a fair contribution system
Makes calculation easy and transparent

Higher CC vehicles generally cost more and consume more resources, which is why they are taxed at a higher rate.

When and How Token Tax Is Paid (Step-by-Step)

Token tax must be paid on time to avoid legal and financial issues. Here is the simple step-by-step process:

Check your vehicle’s engine capacity and invoice price
Calculate applicable token tax as per official rates
Visit the nearest excise office or approved online platform
Pay token tax and collect the receipt
Keep the receipt safe for verification and resale

Failure to pay token tax can result in fines, penalties, and problems during vehicle transfer.

Important Advice for Vehicle Owners

Car owners should stay careful and informed to avoid unnecessary trouble.

Useful tips for all vehicle owners:

Always verify engine capacity before calculation
Keep token tax payment receipts safe
Pay tax before deadlines to avoid penalties
Follow official Excise channels for updates

All updates should be checked through the official website: https://excise.punjab.gov.pk (mentioned once for reference).

Helpline & Contact Information (Punjab Excise)

For confirmation, complaints, or guidance, vehicle owners can contact Punjab Excise through official channels.

Punjab Excise Helpline & Contact Options:

Excise & Taxation Punjab official website
Nearest district excise office
Online vehicle verification portals
Official helpline numbers listed on the Excise website

Conclusion

The Punjab Excise Token Tax Rates for Cars for January 2026 remain unchanged, offering stability and clarity to vehicle owners across the province. Whether you own a small 800 CC car or a high-engine-capacity vehicle, understanding your tax slab is essential. Paying token tax on time ensures legal driving, smooth resale, and stress-free verification. Always rely on official sources for the latest updates.