Islamabad Road Travel to become more expensive as authorities move to increase Token Tax

ISLAMABAD – For thousands of Islamabad residents, owning a vehicle is already becoming expensive amid soaring fuel prices, maintenance costs, and soaring vehicle prices, and now, another potential burden is looming as authorities capital proposed an increase in vehicle token tax. While the move has not yet been approved, the debate already sparked concern among motorists who are struggling with rising living costs and mounting transportation expenses. The proposed legislation was presented with argument that Islamabad urgently needs additional revenue to support the financial requirements of Islamabad Capital Territory (ICT). Officials backing the measure maintained that increase would help generate funds for public services and development needs. To strengthen their case, Islamabad’s administration pointed to Punjab, where vehicle owners already pay considerably higher token taxes, arguing that the federal capital’s rates are due for revision. The proposal hit unexpected hurdle when Ministry of Law stepped in and refused to allow a rushed approval. Law Minister officials insisted that imposing new financial burdens on citizens cannot be treated as a routine matter and requires a thorough legal and policy review before any final decision is taken. Adding another twist to debate, Law Minister raised concerns about existing mechanism for revising token taxes. He suggested granting the Federal Cabinet permanent authority to adjust token tax rates, warning that without such powers the government would have to return to Parliament every time it wanted to revise the fee structure. For now, Islamabad’s motorists received temporary reprieve, as the proposal has been deferred until the next meeting for detailed examination. But with officials openly discussing higher charges and comparing Islamabad’s rates to Punjab’s, many vehicle owners fear that a tax increase may only be a matter of time. The upcoming review is expected to determine whether