Finance Bill 2026-27 has introduced revised token tax rates on motor vehicles registered in the Islamabad Capital Territory, replacing existing schedules under the West Pakistan Motor Vehicles Taxation Act, 1958.
The new structure sets a flat token tax of Rs 20,000 on private vehicles with engine capacity up to 1,000 cc, marking a fixed-rate approach for the smallest engine category under the revised schedule.
Vehicles with engine capacity between 1,001 cc and 1,500 cc will be subject to a token tax rate of 0.25 percent of invoice value, applying uniformly across both the 1,001–1,300 cc and 1,301–1,500 cc sub-categories.
The 0.25 percent invoice-value rate also applies to vehicles in the 1,501 cc to 2,000 cc engine capacity range, maintaining a consistent percentage-based tax structure across the broader mid-range private vehicle segment under the Finance Bill.
For vehicles with engine capacity between 2,001 cc and 2,500 cc, the token tax rate rises to 0.35 percent of invoice value, with the same 0.35 percent rate applying to all vehicles exceeding 2,500 cc engine capacity.
Under the motor cab category, vehicles with engine capacity up to 1,000 cc will pay Rs 600 in token tax, while those between 1,001 cc and 1,300 cc will be charged Rs 1,000 under the revised commercial vehicle schedule.
Motor cabs with engine capacity between 1,301 cc and 1,500 cc will attract a token tax of Rs 1,700, while those exceeding 2,500 cc will be liable to pay Rs 4,200 under the Finance Bill 2026-27 provisions.
The Federal Board of Revenue has incorporated token tax rates for both public transport and commercial transport categories within the Finance Bill 2026-27, amending the relevant schedules of the West Pakistan Motor Vehicles Taxation Act, 1958.
