Punjab cabinet reduces tax on imported cars in annual budget 2018-19

token tax

[Update] On Tuesday 16th October 2018, the Punjab Assembly held a session, which was chaired by Chief Minister Sardar Usman Buzdar. During the session, the annual budget for the remaining 8 months of the fiscal year 2018-2019 was presented.

Among many propositions in the provincial budget 2018-2019, the government proposed to reduce the yearly tax on cars by 50% to 80%, depending upon the cars’ engine capacity.

This amendment is made to encourage people to get their cars registered in the province, instead of registering in other provinces or Islamabad.

Other than this, the government proposed an increase in stamp duty on different agreements, through which rupees 1 billion in taxes can be generated.

As per the amendments, the luxury tax on 1300cc to 1500cc, which was 70,000 rupees previously, will now be reduced to 15000 rupees. On 1500cc to 2000cc vehicles, the tax will be 25,000 rupees, from 150,000 rupees, and tax on 2000cc to 2500cc cars will be reduced to 100,000, however, the government retained 300,000 rupees tax on cars above 2500cc.

In addition, the Life Time tax on imported motorcycles and motor vehicles up to 1000cc will be increased. The existing tax on bikes is 1200 rupees, which will be increased to 1500 rupees, and on cars and jeeps, the tax will be increased to rupees 15,000 from 10,000.

Moreover, 149 billion rupees will be given for infrastructural development in Punjab, out of which, the road sector will be given 68 billion rupees, and 35.5 billion rupees will be allocated to the transport sector. In addition to it, the Orange Line Project, which has been long overdue, will be allocated 33 billion rupees.

Read More: Car sales go up by 10% m-o-m in September 2018

Appreciating the efforts of different departments ministers, the CM Buzdar said,

“The Pakistan Tehreek-i-Insaf’s first provincial budget has been devised keeping the common man in mind. Despite the tough economic situation the country is faced with, the budget has outlined measures to provide relief to the common man, in accordance with PM Imran Khan’s vision.”

Stay tuned for more latest updates.


I am a visual communications artist, I use arts and visual content to tell automotive stories to people.

Notable Replies

  1. Who made this autistic decision? Taxes should be based on emissions and efficiency not the size of an engine.

    Also this will discourage people from registering their cars in Punjab and will end up reducing tax collection.

  2. soka6 says:

    Bhai se Edhi si baat ha .aik hi registration centre poorae mulk kae lia Hona chaiyae . Punjab ya sindh ya balochistan koi mukhtalif mulk ha Kia ?

  3. Token tax on engine capacity makes no sense. A person driving a 1.5cr Mercedes E-class (2000cc) and a person driving a latest Prado of same price range (2.7ltr or 4.0ltr) why they should pay different token tax? Similar case is new fortuner and new c-class where c-class would be expensive but one would be paying 25000 and other 300,000

    Purpose of drastic increase in token tax above 2500cc is that the one who can afford must pay. So this applies on people buying mercs and bmws also. So i think government should make some rule where token should be calculated on the price tag of the car.

    This new token tax structure means either people will get cars registered from other province or from islamabad or they will just move from v8s to mercs or bmws enjoying the luxuries and paying peanut to government.

  4. Taxes, duties etc etc being increased which is affecting general public and increasing inflation.
    Existing taxpayers should be given relief, even if they are rich/filthy-rich owing to clean source of income but why to levy extra ordinary tax/duties to compensate for losses caused by tax evaders and wealth looters?

    Why not bring back the looted wealth?

    INKO RULAUNGA MEIN
    INKO TAKLEEF POHANCHE GEE
    INKO TAKLEEF POHANCHAOUNGA MEIN

  5. hash4u says:

    who wrote this news ?

    This is not token tax we pay annually

    this is 1 time tax on imported vehicles at the time of registration

    why are you giving people a heart attack on wrong info

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