Token tax is the annual vehicle registration fee paid to the provincial excise department in Pakistan. In addition, there is a separate withholding tax on vehicle registration under FBR Section 231B. Filers pay significantly lower rates than non-filers. This guide explains both taxes, rates for 2026, and how to pay online.
Two Vehicle Taxes to Understand
Vehicle owners in Pakistan pay two types of tax. First, the provincial token tax (annual registration fee) paid to the Excise and Taxation Department. Second, the federal withholding tax under Section 231B of the Income Tax Ordinance deducted on purchase of new vehicles. Being an active filer reduces the Section 231B WHT by up to 50%.
Section 231B WHT on Vehicle Purchase 2026
| Engine Capacity | WHT Filer | WHT Non-Filer |
|---|---|---|
| Up to 850cc | Rs 10,000 | Rs 30,000 |
| 851cc to 1000cc | Rs 20,000 | Rs 60,000 |
| 1001cc to 1300cc | Rs 30,000 | Rs 85,000 |
| 1301cc to 1600cc | Rs 50,000 | Rs 150,000 |
| 1601cc to 1800cc | Rs 75,000 | Rs 200,000 |
| 1801cc to 2000cc | Rs 100,000 | Rs 270,000 |
| Above 2000cc | Rs 150,000 | Rs 400,000 |
Biggest Saving Example: Buying a 1600cc car? A filer pays Rs 50,000 WHT while a non-filer pays Rs 150,000 - a difference of Rs 100,000. The cost of filing your tax return is Rs 3,500. The saving on a single vehicle purchase is 28x the cost of filing.
Become a Filer Before Buying Your Vehicle
- WhatsApp CNIC to 0328-4675162
- We register NTN and file your return in 24-48 hours
- ATL status activates within 3-7 days
- Buy your vehicle at the filer WHT rate
- Total cost: Rs 3,500 - savings up to Rs 250,000
Save Lakhs on Vehicle Registration - File Your Return First
WhatsApp 0328-4675162 before buying a vehicle. We get you on ATL in 48 hours. Starts at Rs 3,500.