ISLAMABAD: The Finance Bill 2026-27 has increased the token tax on motor vehicles in the Islamabad Capital Territory (ICT).
In the West Pakistan Motor Vehicles Taxation Act, 1958 (WP Act XXXII of 1958) as in force in the Islamabad Capital Territory, in the Schedule, for the Tables 2, 3, 4, and 5, the following shall be substituted.
On Engine capacity up to 1000 CC, the token tax of Rs 20,000 has been imposed. On engine capacity from 1001 to 1300 cc, the tax rate of 0.25 % of Invoice Value will be charged. On engine capacity from 1301 to 1500 cc, the tax rate of 0.25 % of Invoice Value will be imposed and charged. For engine capacity from 1501 to 2,000 cc, the tax rate of 0.25 % of Invoice Value will be charged.
For engine capacity from 2001 to 2500 cc, the tax rate of 0.35 % of invoice value will be charged. On engine capacity from 2501 and above, the tax rate of 0.35 % of invoice value will be charged.
For motor cabs on engine capacity up to 1000 CC, the tax rate of Rs600 will be charged. For exceeding 1000cc but not more than 1300cc, the tax rate of Rs1000 will be charged. For exceeding 1300cc but not more than 1500cc, the tax rate of Rs1700 will be charged. For exceeding 2500, the tax rate of Rs4200 will be charged.
The FBR has placed token tax rates of public transport and commercial transport in the Finance Bill 2026-27.
