For the past few days, a news was circulating on social media that the Punjab government has ended lifetime token policy for under 1000cc cars. As per the news, the government is now receiving Token Tax on these vehicles. So, we decided to get to the bottom of it. And after a bit of digging, we came to know that the news is fake.
While talking to PakWheels, Punjab Excise and Taxation department official said that the government has implemented no such policy. “It is just a proposal; for now, first, it will go to the federal cabinet where it will be discussed,” he said. He further said that if the cabinet approved it, the new policy would be implemented from July 1, 2021. “However, many proposals go to cabinet for discussions, some get approval, while others are rejected,” he explained.
“It is all in very initial stages, so nothing is confirmed in this matter as yet,” he stated.
Lifetime Token For Under 1000cc Cars?
So, what is lifetime token tax for under 1000cc cars? During the second tenure of former Punjab Chief Minister Shahbaz Sharif, the policy was implemented. The government announced that the owners of new cars of this category would pay this tax only once.
But the policy has serious negative impacts because the PML-N government collected the whole tax on these new cars and increased their revenue. However, for the next governments, in this case PTI, there is no revenue in this category which is a huge loss because the number of under 1000cc cars is very high in Pakistan. So, PML-N got all the income, leaving the current government with nothing.
So, to increase its revenue, the current government must have decided introduced this policy.
Should it Be Done?
No, we don’t think so, you ask why? Let us explain. First, the government policies must have continuity because any disruption will cause serious administrative and legislative issues. Second, it would be very hard to implement the policy as it is very difficult to know which car owner has paid lifetime token and which has not. To resolve that, the government would have to launch an extensive operation which would be costly.
It is yet to be seen whether the cabinet will approve this proposal; until then, let us all wait and watch.
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