The Excise and Taxation Department has announced a strict new policy targeting defaulters of vehicle token taxes. According to the department, vehicle registrations will be canceled if token taxes remain unpaid by January 1, 2024. Additionally, defaulters will face a 200% penalty under this new regulation.
Deadline for Token Tax Payment
To ensure compliance, the department has offered a 20-day grace period for vehicle owners to clear their outstanding token taxes. A spokesperson for the Excise and Taxation Department has urged citizens to act promptly, emphasizing the importance of timely payments to avoid legal consequences.
Penalties for Non-Compliance
Vehicles with unpaid token taxes after January 1 will face legal action. The spokesperson highlighted the repercussions, stating that failure to pay taxes on time will result in hefty fines and possible vehicle registration cancellation.
Deputy Commissioner Islamabad Ensures Implementation
Islamabad Deputy Commissioner Irfan Memon has confirmed the government’s commitment to enforcing this policy. “We will take strict action against vehicles with unpaid token taxes after January 1. Citizens are encouraged to avoid penalties by making timely payments,” he stated.
Government’s Efforts Against Tax Evasion
This policy aligns with the government’s broader initiative to combat tax evasion. The Federal Board of Revenue (FBR) aims to meet its ambitious target of collecting PKR 980 billion in taxes by December 2024. However, as of now, only PKR 775 billion has been collected in the first four months of the fiscal year.
How to Pay Token Tax
The Excise and Taxation Department has simplified the process of token tax payments. Vehicle owners are advised to visit their nearest excise office or use online platforms to ensure timely payments and avoid unnecessary complications.
Why This Policy Matters
The new policy is part of the government’s ongoing efforts to increase tax compliance and ensure a fair system for all. Vehicle owners must adhere to these guidelines to avoid penalties and ensure smooth vehicle registration processes.
For further details, citizens are encouraged to contact their local Excise and Taxation office or visit the official website.
