Under the Punjab budget proposal, vehicle token tax will increase to Rs 24,000.

LAHORE – The Punjab Finance Minister today presented the budget for the financial year 2026-27, introducing a series of new tax proposals and revisions in vehicle and property tax.

The budget proposes a significant increase in the annual vehicle token tax, which is expected to triple the rate. Under the proposals, the annual tax on vehicles, which is currently Rs 2,200, may be increased to Rs 6,600. Similarly, the annual tax of Rs.4000 is proposed to be increased to Rs.12000 while the token tax of Rs.6000 is proposed to be increased to Rs.18000. The annual tax of Rs.8000 is also proposed to be increased to Rs.24000.

The budget has proposed an increase in withholding tax on vehicle registration and transfer. The current rate of 0.2 percent is proposed to be increased to 0.3 percent, while another slab of 0.3 percent may be increased to 0.4 percent.

Motor dealers have also been proposed to be given the status of withholding agents. Additionally, delivery of vehicles will not be permitted until registration is completed.

In the property sector, it is proposed to make payment of property tax through electronic system mandatory while manual payment will no longer be accepted.

The budget also proposes to impose a quarterly surcharge on property tax defaulters. Under the current system, a surcharge is levied on a monthly basis in case of non-payment.

Several other changes in taxes and procedures related to the Excise and Taxation Department have also been proposed in the budget.

The post Punjab budget proposal will increase vehicle token tax to 24 thousand rupees appeared first on Daily Pakistan English News.

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