The Punjab government has ended tax breaks for ten-year-old cars. It’s important to note that the token tax on these vehicles has been eased. According to our sources, the government has the 25-30% discount on this tax. This discount was granted on Income tax.
The reports go on to say that the Assembly has accepted the proposal. “According to the authorities, the old cars became more widespread pollution, hence end of easing, “added the reports. In addition, the government will collect not only the current tax, but also Tax from previous years.
The development has come because the federal government has made several available Tax breaks and incentives to the auto industry to lower car prices under the new auto policy. The prices of all cars have come down, but steps like this will do it do not transfer the benefit to the general public.
For a better understanding, the following table of token tax, income tax and professional tax in Punjab follows:
Source: Punjab Excise Department
In early June 2021, the provincial government asked consumers to keep their token taxes up July 1. If there is no submission, the government could confiscate the vehicle, arrest the owner, impose heavy fines or cancel the car’s registration.
How to pay Punjab car token tax
Punjab’s E&T department has made it easy for citizens to pay all kinds of taxes. Citizens can pay their token taxes online without visiting the office. This is how you do it.
- Install the e-Pay Punjab app from the Google Play Store or Apple App Store
- Create an account to get started
- Select Token Tax under the Excise Duties and Taxes tab
- Enter vehicle registration number (e.g. LEA-123 or LEA-20-123)
- Confirm the details and generate a challan
- Make a note of the PISD number and pay your vehicle token tax using mobile banking, internet banking, ATMs or OTC (over the counter) banking transactions.
When you’re done, don’t forget that Token tax sticker and stick it on your car’s windshield.
Use the Vehicle tax calculator to find out how much token tax you owe on your vehicle. For more information call 0800-08786, send an SMS to 8785.