The Punjab Excise, Taxation and Narcotics Control Department has released the complete Motor Vehicle Tax Schedule for FY 2026-27, introducing revised rates for vehicle registration, annual token tax, transfer fees, withholding tax, Capital Value Tax (CVT), commercial vehicles, and electric vehicle (EV) incentives. The updated taxation structure aims to increase revenue while encouraging tax compliance and promoting environmentally friendly transportation through generous concessions for EVs.
For vehicle owners, buyers, and dealers, understanding these revised taxes is essential because they directly affect the total cost of purchasing, registering, transferring, and maintaining a vehicle in Punjab.
The Punjab Government has revised token tax for several engine categories.
Engine Capacity
Token Tax 2024-25
Previous
Motorcycle
Rs1,500
Rs1,500
Cars up to 1000cc
Rs20,000
Rs15,000
1001-1199cc
0.2% of Invoice Price
Rs1,800
1200-1299cc
Rs1,800
Rs1,800
1300cc
Rs1,800
Rs2,500
1301-1499cc
Rs6,000
Rs2,500
1500cc
Rs6,000
Rs3,750
1501-1599cc
Rs9,000
Rs3,750
1600-1999cc
Rs9,000
Rs4,500
2000cc
Rs9,000
Rs10,000
2001-2500cc
0.3% of Invoice Price
Rs12,000
Above 2500cc
Rs15,000
Rs10,000
Income Tax & Professional Tax
Vehicle
Income Tax (Filer)
Income Tax (Non-Filer)
Professional Tax
Up to 1000cc
Rs10,000
Rs30,000
Rs200
1001-1199cc
Rs1,500
Rs4,500
Rs200
1200-1299cc
Rs1,750
Rs5,250
Rs200
1300-1499cc
Rs2,500
Rs7,500
Rs200
1500-1599cc
Rs3,750
Rs11,250
Rs200
1600-1999cc
Rs4,500
Rs13,500
Rs200
2000cc
Rs10,000
Rs30,000
Rs200
Above 2000cc
Rs10,000
Rs30,000
Rs200
Transfer Fee
Vehicle
Transfer Fee
Motorcycle
Rs550
Heavy Transport Vehicle
Rs5,500
Cars up to 1000cc
Rs2,750
1001-1800cc
Rs5,500
Above 1800cc
Rs11,000
Motorcycles transferred within ten years require Rs1,500 lifetime token tax, subject to a 10% rebate for each completed financial year. Similarly, cars up to 1000cc transferred within ten years are subject to Rs20,000 lifetime token tax, also with a yearly 10% rebate.
Capital Value Tax (CVT)
Category
Details
Applicable On
Vehicles above 1300cc
Tax Rate
1% of vehicle value
Validity
First five years after registration
Depreciation
Vehicle value reduced by 10% annually
Withholding Tax on New Registration (Effective July 2024)
Engine Capacity
Filer
Non-Filer
Up to 850cc
0.5% of value
1.5%
851-1000cc
1%
3%
1001-1300cc
1.5%
4.5%
1301-1600cc
2%
6%
1601-1800cc
3%
9%
1801-2000cc
5%
15%
2001-2500cc
7%
21%
2501-3000cc
9%
27%
Above 3000cc
12%
36%
Commercial Vehicle Token Tax
Vehicle
Annual Tax
Up to 4060kg
Rs1,000
4061-8120kg
Rs2,200
8121-12000kg
Rs4,000
12001-16000kg
Rs6,000
Above 16000kg
Rs8,000
Commercial tractors:
Token Tax: Rs2,600
Professional Tax: Rs200
Income Tax: Rs7,200
Passenger Transport Tax
Vehicle Type
Annual Tax
Rickshaw
Rs3,000 (One-Time Lump Sum)
Urban Route Buses
Rs140 per seat
Non-AC Bus
Rs180 per seat annually
AC Bus
Rs300 per seat annually
Motor Cab Tax
Engine Capacity
Annual Tax
Up to 1000cc
Rs700
1001-1300cc
Rs1,200
1301-1500cc
Rs2,000
1501-2000cc
Rs3,000
2001-2500cc
Rs4,000
Above 2500cc
Rs5,000
10% Early Payment Rebate
Vehicle owners who pay their annual token tax on or before 31 August of the financial year will receive a 10% rebate on the payable amount.
Late Registration Penalty
Delay
Additional Fee
Motorcycles (After 30 Days)
Rs500
Cars (60–180 Days)
Rs2,000
Cars (Over 180 Days)
Rs5,000
Agricultural tractors registered after the prescribed period may pay 125% to 200% of the original registration fee, depending on the duration of the delay.
