In Punjab, vehicle-related taxes are administered by the Excise, Taxation and Narcotics Control Department under the Motor Vehicle Ordinance, 1965 and the Motor Vehicle Tax Act, 1958. These taxes generate significant revenue for the provincial government and include token tax, withholding tax, professional tax, and capital value tax (CVT). Vehicle tax obligations differ based on engine capacity, ownership status, and whether the taxpayer is on the FBR Active Taxpayer List (ATL).
Methods of Payment
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Online via ePay Punjab App or FBR’s e-portal
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Designated bank branches using printed challans
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Excise and Taxation Offices across Punjab
Token Tax (Motor Vehicle Tax – MVT) and Professional Tax
| Vehicle Engine Capacity | Token Tax (MVT) | Filer | Non-Filer | Professional Tax |
|---|---|---|---|---|
| Motorcycle (new reg.) | — | PKR 1,500 | PKR 200 | — |
| Up to 1000cc | PKR 15,000 | PKR 10,000 | PKR 20,000 | PKR 200 |
| 1001–1199cc | PKR 1,800 | PKR 1,500 | PKR 3,000 | PKR 200 |
| 1200–1299cc | PKR 1,800 | PKR 1,750 | PKR 3,500 | PKR 200 |
| 1300cc | PKR 1,800 | PKR 2,500 | PKR 5,000 | PKR 200 |
| 1301–1499cc | PKR 6,000 | PKR 2,500 | PKR 5,000 | PKR 200 |
| 1500cc | PKR 6,000 | PKR 3,750 | PKR 7,500 | PKR 200 |
| 1501–1599cc | PKR 9,000 | PKR 3,750 | PKR 7,500 | PKR 200 |
| 1600–1999cc | PKR 9,000 | PKR 4,500 | PKR 9,000 | PKR 200 |
| 2000cc | PKR 9,000 | PKR 10,000 | PKR 20,000 | PKR 200 |
| 2001–2500cc | PKR 12,000 | PKR 10,000 | PKR 20,000 | PKR 200 |
| 2500cc and above | PKR 15,000 | PKR 10,000 | PKR 20,000 | PKR 200 |
Capital Value Tax (CVT) on Motor Vehicles
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Imposed on vehicles with engine capacity above 1300cc
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Tax rate: 1% of the vehicle’s value (as per Excise’s valuation tables)
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Tax Period: 5 years from the fiscal year of first registration
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Depreciation: Annual deduction of 10% in vehicle value
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Exemption: After 6 years, no CVT is applicable
Withholding Tax on Vehicle Registration (Effective FY 2025)
Applies at the time of first registration or transfer of ownership. Rates vary based on engine size and taxpayer status.
| Engine Capacity | Filer | Non-Filer |
|---|---|---|
| Up to 850cc | PKR 10,000 | PKR 30,000 |
| 851–1000cc | PKR 20,000 | PKR 60,000 |
| 1001–1300cc | PKR 25,000 | PKR 75,000 |
| 1301–1600cc | PKR 50,000 | PKR 150,000 |
| 1601–1800cc | PKR 150,000 | PKR 450,000 |
| 1801–2000cc | PKR 200,000 | PKR 600,000 |
| 2001–2500cc | PKR 300,000 | PKR 900,000 |
| 2501–3000cc | PKR 400,000 | PKR 1,200,000 |
| Above 3000cc | PKR 500,000 | PKR 1,500,000 |
Important Notes
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Filing status as Filer or Non-Filer significantly affects tax liabilities
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Registration or transfer of vehicles cannot proceed unless taxes are paid
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Withholding tax paid at registration is adjustable against annual income tax liability
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Non-filers also face restrictions on purchasing certain categories of vehicles
