Car Token Tax in Pakistan: Punjab Rates & Worked Examples

Punjab's token tax is simple once you know your engine size: small cars pay a fixed lifetime amount, bigger cars pay a percent of the invoice price. This guide shows the rules — and is honest about which provinces it does not cover yet.

Try it yourself: Car Token Tax Calculator — enter your engine CC, invoice price and province.

The formula (Punjab)

Up to 1000cc: Rs 20,000 lifetime — a one-time amount, not yearly.
1001–2000cc: 0.3% of the car's invoice price, per year.
2001cc and above: 0.4% of the car's invoice price, per year.

Worked example 1: 800cc car (Punjab)

Engine up to 1000cc → Rs 20,000 lifetime. No invoice price is needed, and there is no yearly amount for this band.

Worked example 2: 1300cc car, invoice Rs 4,000,000 (Punjab)

1300cc falls in the 1001–2000cc band → 0.3% × Rs 4,000,000 = Rs 12,000 per year (about Rs 1,000 per month).

Worked example 3: 2500cc car, invoice Rs 6,000,000 (Punjab)

2500cc falls in the 2001cc+ band → 0.4% × Rs 6,000,000 = Rs 24,000 per year (about Rs 2,000 per month).

Sindh, Islamabad, KPK and Balochistan

The calculator does not yet contain verified token tax rates for Sindh, Islamabad, KPK or Balochistan — selecting any of them shows "rates not verified" instead of a number, because guessing would be worse than saying so. TODO for the site owner: supply the official Excise & Taxation rates for these provinces so they can be added with sources.

Assumptions behind these figures

Punjab rates only, as used by the calculator. Other provinces: not verified.
For 1001cc and above, the percent applies to the invoice price you enter — use the price on your invoice, not the current market value.
The 1000cc band is a lifetime amount in the calculator's data, not an annual figure.

Common mistakes

Applying the percent to the wrong price. It is the invoice price, not what the car would sell for today.
Treating the 1000cc amount as yearly. Up to 1000cc is a one-time lifetime amount in Punjab's data here.
Using Punjab rates for another province. Every province sets its own token tax — a Punjab figure is not a Sindh or Islamabad figure.

Source and date note

Punjab rates verified: October 2026. Source: Punjab FY 2026-27 rates (Finance Bill 2026) as used by the Car Token Tax Calculator. TODO for the owner: the official Excise & Taxation links and the other provinces' rates are still needed. Verify your vehicle's tax with your province's Excise department before paying. This guide is general information only, not tax advice.

Reviewed by [MY NAME — one-line credential]

Last updated: October 2026. This guide explains the calculator's formula and worked examples; it is general information, not personal financial or tax advice.

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