The federal government has approved a significant increase in vehicle token tax, registration, and transfer fees in Islamabad. The changes aim to update outdated rates and bring them in line with other provinces. Officials say the decision will help improve revenue and enhance the efficiency of the Excise and Taxation Office.
According to a summary by the Interior Ministry, the existing token tax rates have not changed since 2019. As a result, Islamabad’s fees lag behind those of the provinces. The ministry proposed aligning the capital’s charges with provincial standards to ensure fairness and consistency across regions.
The federal cabinet approved amendments to the West Pakistan Motor Vehicles Taxation Act, 1958. These changes now give the Interior Ministry the legal authority to revise token taxes and fees for private, commercial, and public service vehicles. The updated law grants flexibility to adjust rates based on economic needs.
Officials added that without raising these fees, the ETO office’s performance will continue to suffer. They also noted that rising administrative costs make it harder to maintain quality service. Therefore, higher fees are seen as a step toward strengthening the department’s operations and services.
With this decision, vehicle owners in Islamabad will soon see increased costs for registration, transfers, and annual token payments. While the move may burden citizens, the government insists it is necessary for long-term efficiency and financial balance. The exact date of implementation will be announced soon.