Token Tax up by 50pc, Property Tax Relief reduced as New Rates take effect

ISLAMABAD – The new fiscal year brought higher tax bills for thousands of vehicle owners and property holders as Excise Department begins collecting token tax and property tax under revised rates from today. With token tax increasing by up to 50%, property tax concessions reduced, and online payments made mandatory through e Pay, taxpayers will have to adjust to the government’s latest revenue measures aimed at achieving a Rs124 billion collection target. Under revised taxation policy, vehicle owners will bear heavier financial burden. Token tax for vehicles with engine capacities between 1,001cc and 2,000cc has been increased by 50 percent, while owners of vehicles with engines above 2,001cc will see their token tax rise by 33 percent. Authorities have also implemented higher vehicle transfer fees. Property owners have not been spared either. Excise Department has reduced the previously available 75 percent concession on property tax to 50 percent, while the effective property tax collection rate for the current fiscal year has been doubled from 25 percent to 50 percent. To encourage early compliance, the department has announced limited-time incentives. Citizens who pay their vehicle token tax within the first two months of the fiscal year will receive a 10 percent discount, while those clearing their property tax liabilities within the first three months will be eligible for a 5 percent discount. In a major shift toward digital payments, the Excise Department has made it mandatory for all motor vehicle and property tax payments to be made exclusively through the ePay online system. New tax slabs for salaried persons in Pakistan as FY2026-27 begins