Lahore mulls doubling the annual token tax on all private vehicles

Authorities in capital city of Punjab mulls a proposal to increase the annual token tax on all private vehicles by 100 percent in order to encourage people to use public transport.

Authorities in the capital city of Punjab are mulling a proposal to increase the annual token tax on all private vehicles by 100 percent in order to encourage people to use public transport, a move that would help tackle growing congestions on roads.

The traffic police are also considering an option to hike violation fines for luxury vehicles manifold to curb the violations which cause accidents on roads.

The Chief Traffic Officer (CTO) Lahore has submitted these recommendations to a court after getting nod of the Inspector General (IG) Punjab.

The traffic fine for luxury vehicles are likely to increase from Rs300-500 to Rs 1,500-2,500, while for public transport and other commercial vehicles, they would move up from Rs 500-1,000 to Rs1,500-3,000.

Moreover, the proposal emphasizes on better cooperation among government departments to make the fine and taxation process smoother in Lahore.

Current Toke Tax Rates

The Punjab Excise and Taxation Department receives one time token tax of Rs20,000 on vehicles with engine capacity of up to 1000cc.

It receives 0.2 percent of invoice price of vehicle in wake of token tax on vehicles with engine capacity from 1001cc to 2000cc while 0.3% is charged from vehicles ranging from 2001 to 2500cc above.