ISLAMABAD: The federal government has decided to increase token tax, vehicle registration, and transfer fees in Islamabad from September 1.
According to media reports, the federal cabinet has approved amendments to the West Pakistan Motor Vehicle Taxation Act 1958. The decision will empower the Interior Ministry to revise token tax rates for private, public service, and commercial vehicles.
The Interior Ministry stated in its summary that token tax and other fees had not been revised since 2019. It added that the rates will now be aligned with those set by provincial governments. Officials said that not increasing fees was affecting the performance of the Excise and Taxation Office (ETO).
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In addition, the government has approved a new registration system for vehicles. Under the new system, each vehicle’s registration number will be directly linked to the owner’s CNIC. After selling a car, the old owner will be allowed to retain the registration number, while the new buyer will be issued a fresh number by the Motor Registering Authority.
Unused registration numbers can be reserved for up to two years. However, if the number is not reissued within one month of delay, an additional fee will be charged. The revised fees will be mandatory at the time of vehicle transfer from September 1, 2025.
