Punjab govt announces discount on token tax, revised vehicle transfer fees

The Excise and Taxation Department of Punjab has announced a 10% discount on token tax payments to assist vehicle owners.

With this discount, the Punjab government aims to specifically target those who settle their outstanding dues by August 30, 2025.

According to officials, the discount will be applicable only to the current fiscal year’s token tax. They further emphasised that once this discounted period expires, vehicle owners will be required to pay their token taxes in full without any reductions.

Despite this step for taxpayers, the department simultaneously revised the transfer fees for vehicles and motorcycles, leading to an increase in associated costs for vehicle owners across Punjab.

According to the notification, the transfer fee for motorcycles has been raised by Rs55, changing from Rs550 to Rs605.

Similarly, vehicles with engine capacities ranging from 650cc to 1000cc now have an increased transfer fee of Rs275, making the new total Rs3,025.

For vehicles with engine capacities between 1000cc and 1800cc, the revised fee is Rs6,050, reflecting a rise of Rs550.

Owners of vehicles exceeding 1800cc engine capacity will now face a substantial increase of Rs1,100, bringing the total transfer fee to Rs12,100.

Moreover, Heavy Transport Vehicles (HTVs) see a hike of Rs550, setting the revised transfer fee at Rs6,050.

How to pay car token tax in Punjab

• You can pay the token tax from your home using the e-pay app, available on iOS and Android devices.
• After opening the app, several departments are listed, from which you will choose Excise and Taxation.
• Then you will proceed to enter your vehicle’s registration number, which will generate all of its credentials, including the last paid token tax.
• The total token tax due will appear on your screen, for which you can generate a challan.
• After this, you will get a unique PSID number to simply pay your car token tax through an online transfer or an ATM.