Punjab budget : Vehicle token tax to jump up to Rs24,000

LAHORE (Web Desk) – Punjab Finance Minister presented the budget for the fiscal year 2026-27 today, introducing a series of new tax proposals and revisions in vehicle and property taxation.

The budget proposes a significant increase in annual vehicle token tax, with rates expected to rise up to three times. Under the proposals, the annual tax on vehicles currently set at Rs2,200 may be increased to Rs6,600. Similarly, the Rs4,000 annual tax is proposed to be raised to Rs12,000, while the Rs6,000 token tax may be increased to Rs18,000. The Rs8,000 annual tax is also proposed to be raised to Rs24,000.

The budget further proposes an increase in withholding tax on vehicle registration and transfer. The existing rate of 0.2 percent is suggested to be raised to 0.3 percent, while another slab of 0.3 percent may be increased to 0.4 percent.

It has also been proposed to grant motor dealers the status of withholding agents. Additionally, the delivery of vehicles will not be allowed unless registration is fully completed.

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In the property sector, it has been proposed to make property tax payments mandatory through an electronic system, while manual payments will no longer be accepted.

The budget also proposes the imposition of a quarterly surcharge on property tax defaulters. Under the current system, the surcharge is applied 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.