The Excise and Taxation Department has introduced a revised vehicle token tax system for Islamabad under the Finance Act 2026. Vehicle owners registered in Islamabad are encouraged to review the updated tax structure before making payments.
The government now allows people to complete the entire token tax payment online through the PAK App, making it easier for the motorists, eliminating the need to visit an Excise office. Users can check their dues, generate a payment slip, and pay their annual token tax directly from their mobile phones.
How to pay Islamabad vehicle token tax online
- Download and open the PAK App
- Sign in using your CNIC, email, phone number, or PAK ID (new users must create an account to proceed)
- On the home screen, select the Federal tab
- Scroll to the Excise and Taxation section
- Tap pay token and challan fee
- Enter your vehicle registration number in the required format (e.g., ABC-123)
- Ensure your vehicle has a smart card (online payment is only available for smart card holders)
- Review your vehicle details, including registration information, filer status, and tax validity
- Review the billing summary
- Select 1Link as the payment method
- Generate a payment slip ID (PSID)
- Save the PSID and complete the payment through your mobile banking app or another accepted app
- After successful payment, the Excise & Taxation Department updates your record automatically
Vehicles up to 1,000cc continue to pay Rs20,000 annually, under the revised token tax structure. Vehicles between 1,001cc and 2,000cc are charged 0.25% of the invoice value, while vehicles from 2,001cc to above 2,500cc are taxed at 0.35% of the invoice value.
The revised policy mainly affects higher value vehicles, as Toyota Corolla Altis Grande 1.8 now pays approximately Rs19,530 annually compared to around Rs5,000 under the previous system. Similarly, the annual token tax for a Honda City 1.2L has increased from roughly Rs1,500 to nearly Rs12,000. Vehicle owners are advised to check their exact tax amount through the PAK App before making payment, as the final amount depends on the vehicle’s invoice value rather than engine capacity.
Read more: Vehicle token tax hike: how much revenue will Islamabad earn
