Punjab Token Tax Defaulters Face Penalty and Road Checks From 1 October 2026

Punjab's Excise, Taxation and Narcotics Control Department is starting a drive against token tax and property tax defaulters from 1 October 2026. Officials have been reported as saying that unpaid token tax now carries a 100 per cent penalty. The law allows up to twice the tax.

We read the Punjab Motor Vehicles Taxation Act 1958 and checked the Excise website on 1 October 2026. The 100 per cent figure is not on the department's website yet, so treat it as reported.

Punjab token tax crackdown starts 1 October 2026

Excise officials have been reported as saying the crackdown on Punjab token tax defaulters begins on 1 October 2026, the day after routine payment ended. Unpaid tax will be collected with a penalty. Property tax recovery is part of the same drive.

The date is not random. The Act splits vehicle tax into four quarters that begin on 1 July, 1 October, 1 January and 1 April. So 30 September closes the first quarter of the 2026-27 tax year.

The 10 per cent rebate ended earlier, on 31 August 2026, under Section 3(3) of the Act.

The law allows a penalty of up to twice the token tax

Section 9 of the Act lets the department charge a penalty of up to twice the tax you owe, on top of the tax itself. The reported 100 per cent penalty sits inside that limit. It is not a new law.

Section 9 covers anyone who "neglects or refuses to pay any amount of tax to which he is liable within the period fixed for such payment". The words "may extend to" set a ceiling, not a fixed charge. That ceiling has stood since 1966.

The Punjab Finance Act 2026 left the penalty alone. It raised the rates from 1 July 2026 instead.

That table is an illustration. Your real bill depends on your car's invoice price and the unpaid period.

Who the Punjab token tax penalty applies to

The penalty applies to owners of vehicles registered in Punjab who pay token tax every year and have not paid for 2026-27. Motorcycles and cars up to 1000cc pay a one-time lump sum at registration, so most of them are outside the yearly default.

The annual tax falls mainly on cars above 1000cc, jeeps and commercial vehicles. For cars from 1001cc to 2000cc, the 2026-27 rate is 0.3 per cent of the invoice price. Above 2000cc, it is 0.4 per cent. Both went up on 1 July 2026, as our earlier check of the Punjab token tax rates showed.

One relief is easy to miss. Under Section 13(2-A), an annual payer who proves the vehicle was off the road for at least three months can get the tax cut for that time.

What the crackdown involves on the road

The department's crackdown notice describes Excise teams checking cars at different points, taking tax with a penalty on the spot, and locking cars without registration. For non-payment, it warns of impounding, a fine or both.

That notice is still on the Excise website, but its image file dates from May 2024. It shows the department's usual method, not a new 2026 order.

The Act also allows slower recovery. Section 11 lets the department seize and sell movable property under a warrant, or recover dues as arrears of land revenue.

A pending tax bill also gets in the way when you sell. Any careful buyer will want the dues cleared before a car ownership transfer in Punjab, because the arrears stay on the vehicle record.

How to pay Punjab token tax now on ePay Punjab

Pay the unpaid token tax on ePay Punjab today, before a team stops the vehicle. The Punjab government service issues a PSID, a payment code, which you then pay through a bank app, a mobile wallet or a bank branch. Keep the receipt.

1. Check the vehicle's record on the Punjab vehicle registration check to see the tax status.
2. Open ePay Punjab or its app and choose motor vehicle token tax.
3. Enter the registration number and confirm the amount shown.
4. Pay the PSID through your bank app, a wallet or a bank branch.
5. Save the receipt on your phone and keep a copy in the vehicle.

If a penalty is charged and you think it is wrong, Section 12 lets you appeal to the Divisional Excise and Taxation Officer within 30 days of the order. The department's helpline is 1035.

Property tax defaulters face the same drive

The same campaign covers urban property tax. The 5 per cent rebate ended on 30 September 2026. Officials have been reported as saying that commercial properties in long default face sealing from 1 October onwards.

Property tax follows a different law, with a monthly surcharge and its own penalty rules. We set those out when the rebate closed, in Punjab property tax after 30 September.

Common questions

Is the token tax penalty in Punjab 100 per cent?

That is the reported figure from Excise officials. The Act allows any penalty up to twice the tax, so 100 per cent is within the legal limit.

When does the Punjab token tax penalty start?

Officials say from 1 October 2026, after routine payment closed on 30 September. The 10 per cent rebate ended on 31 August.

Do motorcycles and 1000cc cars pay the penalty?

Usually not for the annual tax. The Act charges them a one-time lump sum at registration, not a yearly token tax.

Can Excise impound my car for unpaid token tax?

The department's crackdown notice warns of impounding, a fine or both for non-payment, and says unregistered cars will be locked.

Can I still pay token tax online after 30 September?

Yes. ePay Punjab was working when we checked on 1 October 2026. Any penalty is added to the amount due.

How we verified this

What we checked, where we read it, and what we could not confirm.

Last checked on 1 October 2026. The penalty, quarters, rebate, relief, recovery and appeal rules are read in the Punjab Motor Vehicles Taxation Act 1958 on the Punjab Code. The 2026-27 rates are read in the Punjab Finance Act 2026. The crackdown notice, the rebate notice and helpline 1035 are on the Excise, Taxation and Narcotics Control Department website. The 100 per cent penalty and the 1 October start are reported from officials, and the department had not posted them when we checked.