Motor vehicle owners in the Islamabad Capital Territory (ICT) may soon pay higher token taxes under the Finance Bill 2026-27. The proposed changes link tax rates to engine capacity and vehicle invoice value.
Under the new structure, cars with engine capacity up to 1000cc will face a fixed token tax of Rs. 20,000. However, vehicles between 1001cc and 1300cc, 1301cc and 1500cc, and 1501cc and 2000cc will be taxed at 0.25 percent of their invoice value.
In addition, larger vehicles will see higher charges. Cars with engine capacity between 2001cc and 2500cc, as well as those above 2500cc, will be taxed at 0.35 percent of the invoice value.
The Finance Bill 2026-27 also outlines separate rates for motor cabs. Vehicles with up to 1000cc engine capacity will pay Rs. 600 as a token tax. Meanwhile, cabs above 1000cc and up to 1300cc will be charged Rs. 1,000.
Moreover, motor cabs with engine capacity above 1300cc and up to 1500cc will pay Rs. 1,700. Those above 2500cc will face a token tax of Rs. 4,200.
Furthermore, the Federal Board of Revenue (FBR) has included updated token tax rates for both public transport and commercial transport vehicles in the Finance Bill 2026-27. These changes aim to restructure taxation based on vehicle size and value.
