Pakistan Hikes Vehicle Token Tax Nationwide, What Vehicle Owners Need to Know

Islamabad: The federal govt. has approved a decision to increase the token tax on vehicles, following amendments to the West Pakistan Motor Vehicles Act.

Under the new amendments, token tax rates for private, commercial, and public transport vehicles across the country will be increased. The changes also allow for higher vehicle registration and transfer fees, with the Ministry of Interior authorized to set the revised rates.

The Ministry of Interior explained that the token tax had not been revised since 2019, which had affected the efficiency of CTO offices. The Cabinet has formally approved the amendments and endorsed the related decisions.