The Islamabad Capital Territory (ICT) administration has increased the vehicle token tax. Under the new policy, the tax will now be calculated on the vehicle’s invoice value. But how much revenue is ICT expecting to earn.
According to a post on the social media platform X, formerly Twitter, the token tax in ICT has been increased, as now it will be charged on the invoice of the vehicle at a rate of 0.25 and 0.35 per cent tax plus income tax and others.
This means the vehicle owners will pay a token tax at rates of 0.25 per cent and 0.35 per cent. This will be along with applicable income tax and other charges.
“The ICT admn is all set to collect Rs5.3 billion in CFY against Rs3.7 billion estimated for last fiscal year,” the post further adds.
The ICT administration expects to collect Rs5.3 billion in token tax during the current fiscal year. This is higher than the Rs3.7 billion estimated for the previous fiscal year.
Token tax in ICT has been increased as now it will be charged on the invoice of the vehicle at a rate of 0.25 and 0.35 percent tax plus income tax and others. The ICT admn is all set to collect Rs 5.3 billion in CFY against Rs 3.7 b estimated for last fiscal year.— Mehtab Haider (@haider_mehtab) July 10, 2026
Vehicle token tax increase
Recently, the government approved a new vehicle token tax system under the Budget 2026-27. The new tax will apply to newly registered vehicles in Islamabad.
Under the revised policy, the token tax will depend on the vehicle’s engine size. Some vehicles will pay a fixed amount, and others will pay a percentage of the vehicle’s invoice value.
Vehicles with an engine capacity of up to 1,000cc will pay a fixed annual token tax of Rs20,000.
Additionally, vehicles with engine sizes from 1,001cc to 2,000cc will pay token tax equal to 0.25 per cent of the vehicle’s invoice value.
Vehicles with engine sizes from 2,001cc to 2,500cc and those above 2,500cc will pay token tax at 0.35 per cent of the invoice value.
The new token tax rates are expected to take effect after the Budget 2026-27 is implemented. They will apply only to newly registered vehicles in Islamabad.
