450,000 Vehicles Default on Token Tax in Pakistan

More than 450,000 vehicles have been marked as token tax defaulters, with almost Rs. 5 billion still unpaid, putting many owners at risk of penalties, checkpoint action, and registration trouble if they delay payment.

The Excise and Taxation Department has already collected more than Rs. 4.25 billion from around 400,000 vehicle owners in the first four months of the fiscal year, said Director Motors Shahid Geelani. But the department still sees a large number of unpaid cases, and the available information does not give a vehicle-by-vehicle breakdown of how much each owner owes.

Registrations Already Suspended for Major Defaulters

Geelani said the registrations of major token tax defaulters have been suspended in the department’s system. That means owners may face problems when trying to complete official vehicle work, such as transfer, verification, or other record changes linked to registration status. For background, read our earlier coverage: Pakistan Budget 2026-27: Islamabad Token Tax Overhaul Hits Vehicle Owners.

Defaulters are also expected to pay the overdue tax along with penalties this year. The exact penalty amount has not been shared, so vehicle owners should not assume every case will carry the same charge.

For many people, this can become an avoidable headache. A suspended record can slow down routine use of the vehicle in official matters, especially for people who depend on their cars or bikes for work, school runs, or business travel.

Eight Checkpoints Add Pressure on Drivers

The department has also set up checkpoints at eight locations across the city to inspect vehicles and take legal action against defaulters. The city name and the exact checkpoint locations were not made public in the available report.

This makes it more important for owners to check their token tax status before they drive. It is especially important for people who bought a used vehicle, because unpaid dues may still be attached to the vehicle record even if the ownership has changed hands.

If you recently bought a car or motorcycle, do not assume the token tax was cleared by the previous owner. An official status check can save you from trouble at a checkpoint or when trying to transfer the vehicle later.

For readers tracking token tax changes in Pakistan, DrivePK has also covered related updates such as Punjab’s 10% token tax discount for 2026 and Islamabad’s token tax overhaul, which show how quickly vehicle taxation rules can affect daily ownership costs.

What Vehicle Owners Should Do Now

Vehicle owners should verify their token tax and registration status through the official Excise and Taxation Department channel. They should also keep their payment proof and vehicle documents ready after clearing dues.

Before paying, it is smart to confirm:

• the exact outstanding amount

• any penalty added to the case

• the correct payment method

• whether any previous dues remain linked to the vehicle

The department’s reported action shows that waiting can now be risky. With checkpoints in place and registrations already suspended for major defaulters, delaying payment may lead to legal and administrative problems that are harder to fix later.

For daily commuters, the safest move is simple: check the status first, pay confirmed dues through the official channel, and keep the receipt.

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