Quick Answer

To check your Lahore car's token tax online, enter your registration number on the Punjab Excise MTMIS verification portal or in the ePay Punjab app. To pay, open ePay Punjab, choose Excise & Taxation, then Token Tax, and enter your registration number. Generate the 17-digit PSID and pay it through your banking app, ATM, or mobile wallet.

For FY 2026-27, Punjab charges cars from 1001cc to 2000cc 0.3% of the invoice price and cars above 2000cc 0.4%. Cars up to 1000cc pay a fixed Rs 20,000. For more background, see ICT's vehicle token tax guide for Pakistan.

Introduction

Token tax is due every year on almost every car registered in Lahore. This year the amount changed for most owners. The Punjab Finance Bill 2026 proposed raising the rate for cars above 1,000cc and up to 2,000cc from 0.2% to 0.3% of invoice value, and for cars above 2,000cc from 0.3% to 0.4%. The Punjab Excise website now lists these as the 2026-27 rates. If you budgeted using last year's receipt, you will probably underpay.

At the Institute of Corporate & Taxation (ICT), we teach provincial and federal tax compliance every day. This guide explains the current rates, how to check what you owe, how to pay from your phone, and what goes wrong most often. For how the Excise department works more broadly, read our Excise and Taxation Punjab online guide and our complete guide to excise and taxation in Pakistan.

What Is Car Token Tax in Lahore?

Token tax is the annual motor vehicle tax (MVT) that the Punjab Excise, Taxation & Narcotics Control Department collects on registered vehicles. It is administered under the Motor Vehicle Ordinance, 1965 and the Motor Vehicle Tax Act, 1958. You can read the full text of the Punjab Motor Vehicles Taxation Act, 1958 on the Punjab Laws portal.

When you pay token tax in Lahore, the total usually has three parts:

1. Provincial token tax (MVT). This is Punjab's own levy, and it is the part that changed in 2026.
2. Federal advance income tax under section 234 of the Income Tax Ordinance, 2001. Excise collects this on behalf of the FBR. The amount depends on engine capacity and on whether you are a filer.
3. Professional tax. Punjab Excise lists this as a small fixed charge alongside the car rates.

The provincial and federal parts are governed by different laws. That distinction matters for refunds, adjustments, and exemptions, which are covered below.

Why Is Lahore Car Token Tax Important in 2026?

Token tax has always been a legal requirement, but several changes in 2026 make paying it on time more important for Lahore car owners.

1. Most Car Owners Now Pay More

For FY 2026-27, Punjab Excise lists token tax for cars from 1001cc to 2000cc at 0.3% of invoice price, up from 0.2% in 2025-26. Cars above 2000cc now pay 0.4%, up from 0.3%. Because the tax is a percentage of the invoice price, owners of newer and more expensive cars see the largest increase. If you budget from last year's receipt, you will likely underpay and build up arrears.

2. Enforcement Is Stricter Than Before

In June 2026, the Punjab Excise department warned token tax defaulters of a 100% penalty surcharge and said vehicles with unpaid token tax would be impounded on the spot. The recovery drive already shows results: the department reported collecting Rs40 billion through motor vehicle tax. For a Lahore driver, an unpaid token can now mean a seized car, not just a reminder notice.

3. The Legal Penalty Can Exceed the Tax Itself

Under the Punjab Motor Vehicles Taxation Act, 1958, the licensing officer can assess unpaid tax and add a penalty of up to twice the amount owed. A small annual amount can therefore grow into a significant liability if it is ignored for a few years.

4. Unpaid Tax Blocks Resale and Transfer

Token tax arrears stay attached to the vehicle's Excise record. When a buyer runs an online vehicle verification on MTMIS, the "paid up to" date shows immediately. Arrears either lower your selling price or delay the transfer until they are cleared.

Transfers are also becoming more tightly controlled. Punjab Excise announced biometric verification for vehicle registration and transfer through the PAK IDENTITY app. A clean tax record makes the process much smoother.

5. Filer Status Directly Changes What You Pay

The federal income tax collected with token tax depends on whether you are on the Active Taxpayer List. For a 1300cc car, Punjab Excise lists Rs 2,500 for filers and Rs 7,500 for non-filers. For filers, this amount is also adjustable against their annual income tax. Paying token tax on time as a filer therefore saves money twice: once at payment, and again when you file your return. Read our guide on filer vs non-filer in Pakistan for more detail.

6. Timely Payment Earns a Discount

Punjab gives a 10% rebate on annual token tax if the full year's tax is paid by August 31. Owners who plan ahead save money every year, while late payers lose the rebate and risk penalties on top of the full amount.

7. It Funds the Roads You Drive On

Token tax is a significant part of Punjab's own revenue. The province plans to collect 42.69% more tax in FY 2026-27 than in the previous year. Motor vehicle tax helps fund road maintenance and transport infrastructure in cities like Lahore.

In short: in 2026, paying your Lahore car token tax on time protects you from impounding and heavy penalties, keeps your car easy to sell, and saves money through the rebate and filer rates.

Punjab Car Token Tax Rates 2026-27

According to the Punjab Excise rate table, cars up to 1000cc pay Rs 20,000, cars from 1001cc to 2000cc pay 0.3% of invoice price in 2026-27 (0.2% in 2025-26), and cars above 2000cc pay 0.4% (0.3% in 2025-26). The same table lists federal income tax by engine size for filers and non-filers, plus Rs 200 professional tax.

What "invoice price" means: The percentage applies to the vehicle's recorded invoice value, not its current resale price. Two cars with the same engine size can therefore owe very different amounts.

Up to 1000cc: The Lifetime Token

For small cars, Punjab uses a one-time lifetime token rather than an annual one. Excise states that if a car up to 1000cc is transferred within ten years of registration, Rs 20,000 is charged with a rebate equal to 10% for each financial year. If you are buying a used Alto, Mehran, or Cultus-class car, check on MTMIS whether the lifetime token was already paid before you agree on a price.

How to Calculate Your Lahore Car Token Tax

For most cars, the annual amount is:

Total payable = Provincial token tax + Federal income tax (section 234) + Professional tax

• Provincial token tax: For 1001cc–2000cc, multiply the invoice price by 0.3%. For above 2000cc, multiply it by 0.4%. For cars up to 1000cc, the fixed Rs 20,000 lifetime token applies instead.
• Federal income tax: This is a fixed amount by engine capacity from the Excise table above. It is higher if you are not on the Active Taxpayer List.
• Professional tax: Punjab Excise lists Rs 200.

Two things change the final figure. Paying the full year by August 31 reduces the token tax portion by 10%, while arrears and penalties from earlier years are added on top. For an official estimate, use the Punjab motor vehicle tax calculator. Before generating a PSID, always compare the estimate with the amount shown in ePay Punjab.

Worked Example (Hypothetical)

Suppose a filer owns a 1300cc car in Lahore with a recorded invoice price of Rs 4,000,000:

• Provincial token tax: 0.3% × 4,000,000 = Rs 12,000
• Federal income tax (filer, 1300cc): Rs 2,500
• Estimated total: about Rs 14,500, plus professional tax and any small platform charge

If the same owner were not on the Active Taxpayer List, the income tax part would rise to Rs 7,500. The total would then be about Rs 19,500.

The figures above are only an illustration. Your actual invoice value is on the Excise record, so the ePay app's figure is the one to rely on. You can also estimate your amount with the official Punjab motor vehicle tax calculator.

How to Check Car Token Tax Online in Lahore

Method 1: MTMIS Punjab (Online Vehicle Verification)

1. Open the MTMIS Punjab portal.
2. Enter the registration number exactly as it appears on your card or book, for example LEA-1234 or LEB-24-1234.
3. Review the result: owner name, make and model, registration date, and the date up to which token tax is paid.

MTMIS is also the standard tool for vehicle verification before buying a used car. It lets you check that the seller's name, the chassis details, and the tax status match the documents. Our Punjab excise vehicle verification guide covers the verification side in more depth.

Method 2: ePay Punjab App

In the app, open Departments, select Excise & Taxation Department, and tap Token Tax. When you enter your registration number, the app shows the owner's name, father's name, make, model, color, and the date your token tax is paid up to. This is the quickest check because the same screen also shows the exact amount due.

Can You Verify a Vehicle by CNIC?

The official MTMIS Punjab portal is designed around searching by registration number. Some unofficial websites claim you can list every vehicle registered on a CNIC, but they describe the feature inconsistently, and not all of them are connected to the Excise department.

If you need to confirm which vehicles are registered in your name, for example after selling a car on an open transfer letter, contact the Punjab Excise department through its official channels rather than entering your CNIC on third-party sites. For a broader look at verification services, see our Excise and Taxation Punjab online guide.

How to Pay Car Token Tax Online in Lahore (Step by Step)

1. Download ePay Punjab from Google Play or the App Store, or use the ePay Punjab web portal. Sign up with your CNIC and mobile number.
2. Go to Departments → Excise & Taxation → Token Tax.
3. Enter your registration number and confirm that the vehicle details match your records.
4. Review the amount due. The app lists token tax, income tax, professional tax, any arrears or penalty, and a small platform charge.
5. Tap Generate Challan. The app creates a unique 17-digit PSID linked to your vehicle and the exact amount due, and ePay Punjab also sends an email confirmation with the same PSID and breakdown.
6. Pay the PSID through your bank's app, internet banking, an ATM, or a mobile wallet. You can clear the payment through 1Link, your bank's app, an ATM, or over-the-counter banking.
7. Save the e-receipt. Check MTMIS a day or two later to confirm that the "paid up to" date has moved forward.

Tip: The ePay PSID for token tax is not the same as an FBR income tax PSID. If you also pay federal taxes, our FBR PSID and CPR guide explains how that separate system works.

Paying in Person in Lahore

If your vehicle record does not appear online, or it has a mismatch that needs manual correction, you will need to visit an Excise office. You can book a slot on the Excise services appointment portal. The department's head office is at Transport House, 11-A Egerton Road, Lahore, and its listed phone numbers are 042-99203848 and 042-99203849.

Punjab Excise has also opened a Public Facilitation Center in DHA Lahore that handles all Excise and Taxation processes in one place.

Token Tax Payment Problems and How to Fix Them

Your vehicle doesn't appear in ePay Punjab or MTMIS.
First, re-enter the registration number in the exact format printed on your card or book, with or without the year code (for example LEA-1234 or LEB-24-1234). If the vehicle still doesn't appear, the record may need manual verification. Book a slot on the Excise appointment portal and bring your original registration document and CNIC.

The owner name, engine capacity, or other details are wrong.
Do not pay against an incorrect record. A wrong engine capacity can put your car in the wrong rate slab, and a wrong owner name causes problems at transfer. Get the record corrected at an Excise office first.

You paid, but the "paid up to" date has not changed.
Keep your bank or wallet receipt showing the PSID and transaction ID. Check MTMIS again after a day or two. If the date still hasn't updated, contact Excise with the PSID and the receipt as proof.

The app shows arrears from previous years.
The app displays the current year's tax together with any pending arrears or fines. Clear everything in one PSID if you can. Because penalties grow over time, splitting payments usually costs more.

Your filer status is wrong.
If you are a filer but the app charges the non-filer income tax rate, check your ATL status before paying. If you were missing from the list, our guide on how to become a filer in Pakistan explains what to do next.

You want to claim the income tax part later.
Save the e-receipt with your tax documents. The section 234 amount is adjustable in your return, and our documents required for the tax year 2026 return checklist shows where it fits.

Rebate, Deadlines, and Penalties

10% early-payment rebate. Punjab allows a rebate of 10% of annual token tax if the whole year's tax is paid on or before August 31 of the financial year. The FY 2026-27 window closed on August 31, 2026, so payments made now are charged at the full rate. The next rebate window applies to FY 2027-28 payments made by August 31, 2027.

Late payment. The Punjab Motor Vehicles Taxation Act, 1958 lets the licensing officer impose unpaid tax and a penalty. That penalty can extend to twice the amount of the tax the owner is found liable to pay. Enforcement is currently strict. In June 2026, the Punjab Excise department warned defaulters of a 100% penalty surcharge and said vehicles with unpaid token tax would be impounded on the spot.

Practical consequence. An unpaid token also creates problems when you sell or transfer the car, because the buyer's verification will show the arrears.

Filer vs Non-Filer: Why It Matters

The provincial token tax is the same whether or not you are a filer. The federal income tax portion is not: non-filers pay three times the filer amount in the Excise table above. Two other points are worth knowing:

• The income tax is adjustable. Under section 234(5) of the Income Tax Ordinance, advance tax collected with token tax can be claimed against your final tax liability when you file your return. Keep the receipt.
• Cars older than ten years. Section 234(2A) provides that no advance tax is collected on motor cars used for more than ten years in Pakistan once that ten-year period has passed. The provincial token still applies.

Before you pay, check your filer status on the ATL. If you are not on the list yet, our guide on how to become a filer in Pakistan explains the process. For the wider picture, see filer vs non-filer in Pakistan. Also remember to declare the vehicle in your wealth statement on IRIS 2.0.

Other 2026 Changes Lahore Owners Should Know

• Biometric verification and re-registration. Punjab Excise announced biometric verification for vehicle registration and transfer through the PAK IDENTITY app, and a re-registration drive for vehicles registered outside Punjab, both scheduled for the last week of January 2026. If you bought a car registered in another province and now live in Lahore, check the Excise website for the current status of re-registration.
• Electric vehicles. Punjab exempts 95% of both the registration fee and the motor vehicle tax for electric vehicles.
• Digital registration cards. Smart and e-registration cards now carry much of the verification data. See our explainer on digital vehicle card features.

Buying or Selling a Used Car in Lahore: Transfer Costs and Tax Checks

Many token tax searches come from people buying or selling a used car. Tax problems are much easier to fix before money changes hands.

Before You Pay the Seller

1. Verify the registration number on MTMIS Punjab and confirm that the owner name matches the seller's CNIC.
2. Check the "paid up to" date. Any unpaid token tax and penalties stay attached to the vehicle.
3. For cars up to 1000cc, confirm whether the lifetime token has already been paid.
4. Make sure the transfer is completed formally at Excise. Punjab Excise has specifically issued notices about open transfer letters and wrong owner addresses.

Transfer Fees in Punjab

Capital Value Tax (CVT) on Transfer

Punjab charges CVT on every transfer of vehicles above 1300cc. It is 1% of the vehicle's value and applies for five years, counted from the July 1 after the registration date. Value is depreciated by 10% each year, and after six years no CVT applies.

Federal Withholding Tax on Transfer

Excise also collects advance income tax under section 231B when ownership changes. This rate goes down by 10% for each year since the vehicle was first registered in Pakistan. As with token tax, filers pay less than non-filers, and the amount is adjustable in the buyer's return. Our guide on how withholding tax works explains the adjustment in more detail.

Biometric Transfer

Punjab Excise announced biometric verification for vehicle registration and transfer through the PAK IDENTITY app. After the transfer, you can check the new card details against our guide to digital vehicle card features.

Registered Outside Lahore? (Islamabad, Sindh, KP)

Token tax is set by the province or territory where the car is registered, not where you live. A Lahore resident driving an Islamabad-registered car pays under the Islamabad schedule.

• Islamabad (ICT): Under the Finance Act 2026, Islamabad cars from 1,001cc to 2,000cc pay 0.25% of invoice value and cars above 2,000cc pay 0.35%. See Islamabad vehicle tax rates 2026 and our guide to verifying registration and paying token tax online in Islamabad.
• Sindh (Karachi): Sindh uses its own portal and fixed engine-size rates. Read our Sindh vehicle verification guide.
• KP and Balochistan: Pay through the relevant provincial Excise department. Their rates differ from Punjab's.

Common Mistakes to Avoid

• Using last year's amount. Rates for cars above 1000cc went up for FY 2026-27, so last year's receipt will understate what you owe.
• Relying on resale value in calculators. The token is based on the recorded invoice price, not what the car would sell for today.
• Trusting unofficial "MTMIS" lookalike websites. Many sites copy the MTMIS name. Use only mtmis.excise.punjab.gov.pk and epay.punjab.gov.pk, and never pay through a link sent by an unknown agent.
• Assuming the payment went through without checking. Always confirm on MTMIS that the "paid up to" date has changed.
• Buying a used car without verifying arrears. Unpaid token tax and penalties stay with the vehicle record, so check before you pay the seller.
• Forgetting the income tax adjustment. Filers can claim the section 234 amount when filing, but only if they keep the receipt.

Expert Tips

1. Set a reminder for August. Paying by August 31 saves 10% every year.
2. Get on the ATL before you pay. Being a filer lowers the federal portion immediately.
3. Screenshot the breakdown before paying. It helps if you later need to dispute a figure.
4. Correct record errors early. A wrong CNIC, name, or engine capacity on the Excise record can block online payment. Book an appointment to fix it rather than waiting until you sell the car.

Why Choose ICT for Learning Provincial and Federal Tax Compliance

Token tax sits where provincial excise law meets the federal Income Tax Ordinance. Most people only learn how the two interact when a payment goes wrong. ICT's programs are built around this kind of practical, law-based compliance work. Our Certified Tax Advisor course covers withholding regimes, including sections 231B and 234, filer status, and return filing. The Advance Taxation and Litigation course goes further into disputes and appeals.

Explore the Course | Enroll Now

Frequently Asked Questions

How can I check my car token tax online in Lahore?
Enter your registration number on mtmis.excise.punjab.gov.pk or in the ePay Punjab app. Both show the date up to which token tax is paid, and the app also shows the amount due.

How do I pay Punjab token tax online?
In ePay Punjab, go to Excise & Taxation, then Token Tax, and enter your registration number. Generate the PSID and pay it through your banking app, an ATM, or a mobile wallet.

What is the token tax on a 1300cc car in Punjab for 2026-27?
It is 0.3% of the car's invoice price, plus federal income tax of Rs 2,500 for filers or Rs 7,500 for non-filers, as listed by Punjab Excise.

Is there a discount for early payment?
Yes. Punjab gives a 10% rebate if the full year's token tax is paid by August 31. For FY 2026-27, that deadline has passed.

Do non-filers pay more token tax?
The provincial token is the same for everyone. The federal income tax collected with it is higher for people who are not on the Active Taxpayer List.

Is token tax income tax adjustable?
Yes. The advance tax collected under section 234 can be adjusted against your final tax liability when you file your return.

Do I pay income tax with token tax on a car older than ten years?
No. Section 234 stops collection of advance tax on cars used for more than ten years in Pakistan. The provincial token tax still applies.

Can I pay Lahore token tax from another city?
Yes. ePay Punjab works from anywhere in Pakistan, because payment is linked to the vehicle's Punjab registration and not to your location.

What happens if I don't pay token tax?
The law allows a penalty of up to twice the unpaid tax. In 2026, Punjab Excise also warned of on-the-spot impounding of defaulting vehicles.

How is token tax calculated for a 1500cc car in Lahore?
Take 0.3% of the car's recorded invoice price, then add federal income tax (Rs 3,750 for filers and Rs 11,250 for non-filers, as listed by Punjab Excise) and professional tax.

What taxes apply when I buy a used car in Lahore?
You pay a transfer fee based on engine capacity. For cars above 1300cc, you also pay 1% CVT during the first five years. Federal withholding tax under section 231B also applies, reducing each year from first registration.

Conclusion

Paying your Lahore car token tax online takes a few minutes. Check your record on MTMIS or ePay Punjab, generate a PSID, pay through your bank or wallet, and confirm that the "paid up to" date has updated. The main thing to remember in 2026 is that the rules changed: cars above 1000cc are now taxed at 0.3% or 0.4% of invoice price, and filer status still decides how much federal tax you pay alongside the token.

If you want to understand these rules well enough to advise clients or your employer, ICT's practical tax programs are a good place to start. Book a Seat today.