By WEB DESK: In Punjab, the annual token tax on vehicles has been increased by 2% and will be effective starting tomorrow.
The increase in the annual token tax was approved in the Finance Bill of the recent budget by the Punjab government.
According to the Finance Bill documents, the annual token tax on vehicles will now be applied based on the invoice value of the vehicle.
According to the documents, vehicles with an engine capacity of 1,000 to 2,000 cc will be subject to a 2% annual token tax on the invoice value.
Moreover, for vehicles with an engine capacity above 2,000 cc, a 3% annual token tax will be applied to the invoice value.
Read More: Sindh Assembly passes Rs3.056 trillion budget amid opposition outcry and walkout
The Finance Bill documents also state that the lifetime token tax has been increased from 15,000 rupees to 20,000 rupees.
According to the documents, upon transferring ownership of a vehicle up to 2,000 cc, the new owner will have to pay the full token tax again.
The Finance Bill documents state that the new owner will pay the lifetime token with a 10% annual discount for up to 10 years upon the transfer of ownership.
No lifetime token will be charged if the ownership transfer occurs after 10 years.
