Pay Punjab Token Tax by 31 August and Save 10 Per Cent

If you pay your whole year's Punjab token tax on or before 31 August, the Excise Department takes 10 per cent off.

We read this on Excise and Taxation Punjab's own rate page rather than taking it from the news coverage. Their wording is exact:

"A rebate equal to 10% of the amount of annual token tax is allowed if the tax for the whole year is paid on or before 31st of August of the financial year."

That sentence contains something the coverage has been getting wrong, and a second thing nobody seems to have noticed at all.

This is a standing rule, not this year's offer

In July 2026 a lot of outlets reported the 10 per cent rebate as a new Punjab announcement, as though it were a limited scheme.

It is not. It sits in the standing rate schedule, worded as a permanent provision of the financial year. It came back this year and it will come back next year. If you missed it, you have missed a discount, not a once in a lifetime offer.

What that changes for you is planning. Paying the full year in one payment before 31 August is simply how Punjab token tax is cheapest, every year.

The part nobody reported: the rate went up

While checking the rebate we pulled the full rate table, and the token tax rate for this financial year is higher than last year's.

For a car between 1001cc and 2000cc, the rate moved from 0.2 per cent of invoice price to 0.3 per cent. That is half as much again. Above 2000cc it moved from 0.3 to 0.4 per cent.

Because the rate is a percentage of the invoice price, the rupee amount also depends on what your car cost when it was new, not on what it is worth today. On a car invoiced at Rs 4,000,000, the 1001cc to 2000cc rate works out at Rs 12,000 for the year, against Rs 8,000 on last year's rate.

The 10 per cent rebate takes that Rs 12,000 down to Rs 10,800. So the rebate does not cover the increase. Both things are true at once, and you should know both before you decide the rebate is generous.

How the structure changed

Punjab used to charge flat rupee amounts by engine size. The published schedule still carries the 2023-24 column showing those old figures, Rs 1,800 for smaller cars up through Rs 15,000 for the largest.

Those flat amounts have been replaced by a percentage of invoice price for everything above 1000cc. The practical effect is that two cars with the same engine size now pay very different token tax if one was a more expensive model.

Cars up to 1000cc are the exception and still show a flat Rs 20,000.

How to pay online

Payment runs through ePay Punjab, which we opened and which is live. You do not need to visit an Excise office or a bank counter.

1. Open the ePay Punjab app, or go to epay.punjab.gov.pk, and choose Excise and Taxation.
2. Select Motor Vehicle Tax and enter your vehicle registration number.
3. Check the calculated amount against the rate table above before you commit.
4. Generate the PSID, a 17 digit payment identifier.
5. Pay the PSID through your bank's app, internet banking, an ATM, or a mobile wallet such as Easypaisa or JazzCash.
6. Save the receipt. It is your proof if the record does not update immediately.

Excise also publishes an online tax calculator for motor vehicles and a verification service for registered vehicles on the same site. If you are unsure whether your record is clean before paying, checking the registration first is the sensible order, and we set that out in the guide to checking car registration in Punjab.

Other rebates and charges on the same page

• Lifetime token on transfer. If a motorcycle is transferred within ten years of registration, Rs 1,500 is charged with a rebate of 10 per cent for each financial year. For cars up to 1000cc the figure is Rs 20,000 on the same 10 per cent per year basis.
• Professional tax is Rs 200 across the car categories.
• Income tax is charged separately and at a much higher rate for non-filers. On several bands the non-filer figure is three times the filer figure.
• Late registration after import, sale or clearance carries an additional fee.

That non-filer multiple is worth a moment. Across the car bands the schedule charges non-filers three times what filers pay on the income tax line. Getting on the Active Taxpayer List is often worth more than the token tax rebate, and we walked through how in the guide to checking your filer status.

What to do before 31 August

1. Pay the full year in one payment. The rebate only applies to the whole year, not to a part payment.
2. Do it before 31 August. After that the rebate is gone and default penalties become a risk.
3. Check your filer status first if the income tax line looks high, because that gap is usually larger than the rebate.
4. Find your invoice price if your car is above 1000cc, since the tax is calculated from it.

Two more numbers on the same vehicle

Token tax is one of several records attached to a car, and the others are checked separately.

If you use motorway tolls, the M-Tag account is its own system with its own balance and its own lookup, set out in checking an M-Tag number.

On motorcycles, which carry a different token position from cars, current pricing on the most common model in the country is in the Honda CD 70.

Questions readers are asking

What is the last date for the Punjab token tax rebate?

31 August of the financial year. The Excise schedule allows a 10 per cent rebate if the whole year's token tax is paid on or before that date.

Is the 10 per cent token tax discount a new scheme?

No. It is a standing provision in Punjab's published rate schedule and it applies every financial year, even though it is often reported as a fresh announcement.

How much is token tax in Punjab for 2026-27?

Rs 20,000 for cars up to 1000cc, 0.3 per cent of invoice price for 1001cc to 2000cc, and 0.4 per cent of invoice price above 2000cc. Motorcycles are Rs 1,500 at registration.

Did token tax go up this year?

Yes, for cars above 1000cc. The published rate moved from 0.2 to 0.3 per cent of invoice price for 1001cc to 2000cc, and from 0.3 to 0.4 per cent above 2000cc.

How do I pay token tax online in Punjab?

Through ePay Punjab. Choose Excise and Taxation, then Motor Vehicle Tax, enter your registration number, generate the PSID and pay it through your bank app, an ATM, internet banking or a mobile wallet.

Does the rebate apply if I pay in instalments?

No. The schedule ties the rebate to paying the tax for the whole year on or before 31 August.