ISLAMABAD: The federal government has decided to increase vehicle token tax across the country.
The federal cabinet has approved amendments to the West Pakistan Motor Vehicle Act, allowing an upward revision in token tax for private, commercial, and public transport vehicles.
Under the new amendments, vehicle registration and transfer fees may also be increased, with the authority to make such revisions vested in the Ministry of Interior.
According to the Interior Ministry, token tax rates have not been revised since 2019, which has negatively impacted the performance of the CTO (Chief Traffic Officer) offices.
Officials indicated that the revised tax structure aims to boost revenue generation and improve service delivery in transport-related departments, while ensuring that tax collection systems are modernized and made more efficient.
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