Islamabad has increased token tax rates on vehicles after approval from the National Assembly Standing Committee on Finance.
The new rates mainly affect cars based on engine size and manufacturing year. According to the updated structure, the token tax for vehicles up to 1000 CC has been raised to Rs 20,000.
Officials said the decision was taken because token tax rates in Islamabad had not been revised since 2019, while other provinces had already increased their charges. Under the new rules, vehicles up to 1000 CC made before 2010 will now pay a fixed tax of Rs 20,000.
The tax system for vehicles between 1000 CC and 1300 CC has also been changed. Earlier, it was calculated at 0.3% of the vehicle’s invoice value, but now it has been reduced slightly to 0.25%.
For these vehicles, the tax will be Rs 2,500 for models made before 2010 and Rs 6,200 for models made after 2010.
Officials informed the committee that Islamabad collected around Rs 3.9 billion from vehicle taxes this year. About 19% of this amount was collected through digital systems.
After the new tax increase, revenue is expected to rise to Rs 5.2 billion in the next fiscal year of 2027.
Authorities said the updated tax plan is designed to improve revenue collection and bring Islamabad system in line with other provinces.
