Another burden as Islamabad mulls hiking motor vehicle registration and token taxes

Islamabad: The federal government has decided to increase vehicle token tax in Islamabad, along with higher charges for vehicle registration and transfer.

The federal cabinet has approved amendments to the West Pakistan Motor Vehicle Taxation Act, 1958, granting authority to raise the token tax on private, public service, and commercial vehicles.

The Interior Ministry stated in its summary that the existing token tax rates and other fees have not been revised since 2019. It proposed aligning Islamabad’s token tax with the rates set by provincial governments.

The ministry further noted that the failure to revise the token tax and related charges has negatively impacted the performance of the Excise and Taxation (ETO) office.

The cabinet has now authorized the Interior Ministry to determine the revised rates for the token tax and other fees.