The Punjab government has ended tax relief on 10-year-old cars. It is pertinent to mention that there was a relaxation on token tax on these vehicles. According to our sources, the government has ended the 25-30% rebate on this tax. This rebate was given on Income Tax.
The reports have further stated that the assembly has passed the proposal. “As per authorities, the old cars spread more pollution, hence, end of the relaxation,” the reports added. Furthermore, the government will not only collect the current tax but also tax from previous years.
The development has come as the federal government provided several tax reductions and incentives to the auto industry to reduce car prices under the new Auto Policy. The prices of all cars have come down, but steps like these will not transfer the benefit to the common public.
For better understanding, following is the chart of Token Tax, Income Tax and Professional Tax in Punjab:
Earlier in June 2021, the provincial government has asked the consumers to submit their token taxes till July 1st. If there is no submission, the government could seize the vehicle, arrest the owner, impose heavy fines, or cancel the car’s registration.
How to Pay Vehicle Token Tax in Punjab
The Punjab E&T Department has made it easy for the citizens to pay all kinds of taxes. Citizens can pay their token taxes online without having to visit the office. Here’s how you do it.
- Install the e-Pay Punjab app from Google Play Store or Apple App Store
- Create an account to get started
- Select Token Tax under the Excise and Taxation Department tab
- Enter vehicle registration number (e.g. LEA-123 or LEA-20-123)
- Confirm the details and generate a challan
- Note down the PISD number and pay your vehicle token tax using Mobile Banking, Internet Banking, ATM services, or OTC (Over the Counter) banking transaction.
Once done, don’t forget to take the token tax sticker and paste it on your car’s windshield.