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Vehicle Registrations to be Canceled for Unpaid Token Tax

From January 1, 2024, the Excise and Taxation Department Islamabad will cancel all vehicle registrations for owners who do not pay their token tax. They will also impose a stringent fine of 200 percent on defaulters.

The citizens are advised by a spokesperson of the department to clear the dues soonest stressing the 20-day grace period for compliance purposes. Vehicle owners having long-due payments are now advised to conduct activities as soon as possible to avoid legal action against them. The administration has promised to enforce this by Islamabad Deputy Commissioner Irfan Memon, warning on a crackdown against vehicles without token tax at the advent of the new year. “We urge citizens to avoid penalties and inconvenience by paying their dues in time,” he said.

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This is in tandem with increased activities of the Federal Board of Revenue (FBR) to make up for the shortfall against the target of collecting taxes amounting to the staggering Rs 980 billion, whose deadline is December. During the first four months of the current fiscal year, the FBR has managed to collect Rs775 billion and promised to take stringent measures against wealthy evaders and those filing nil returns.

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