In a significant step to address unpaid token taxes, the Excise and Taxation Department of Islamabad has issued a final warning to vehicle owners. Starting January 1, vehicles with unpaid token taxes will face cancellation of registration. Owners are being urged to settle their dues within 15 days to avoid legal and financial penalties.
The department is deploying advanced software to systematically identify token tax defaulters. Once the 15-day grace period expires, vehicle registrations will be cancelled, and owners will face a massive penalty of 200% of the original fine for reinstatement.
This stern measure reflects the rising number of defaulters and the urgency to address the issue effectively. Director of Excise and Taxation, Bilal Azam Khan, emphasized the importance of timely compliance to avoid severe consequences.
Field officials have consistently encountered defaulters during road checks. However, the minor fines imposed in the past have failed to prevent repeated violations. This new enforcement strategy aims to plug the loopholes and create a stronger deterrent.
The crackdown aligns with the Federal Board of Revenue’s (FBR) broader strategy to bridge the tax collection gap. With a target of Rs980 billion by December, the FBR has intensified recovery efforts after only collecting Rs775 billion in the first four months of the fiscal year.
To ensure your vehicle complies with legal requirements, here’s a simple guide on the documents needed to register a vehicle in Punjab:
Do you support this move to address unpaid token taxes? Share your thoughts in the comments below and let us know your views!