Vehicle Registration Cancellations to Begin in Islamabad for Unpaid Token Tax

The Excise and Taxation Department of Islamabad has announced that starting January 1, 2024, vehicle registrations will be canceled for owners who fail to pay their token tax. Additionally, defaulters will face a significant penalty of 200% on the unpaid amount.

To facilitate compliance, the department has provided a 20-day grace period, urging citizens to clear their dues promptly. A spokesperson emphasized the importance of settling these payments to avoid legal actions and severe fines. Vehicle owners with overdue taxes are strongly advised to act swiftly.

Islamabad Deputy Commissioner Irfan Memon reiterated the administration’s commitment to addressing tax evasion. He warned that a strict crackdown will be initiated in the new year against vehicles with unpaid token taxes, highlighting the importance of timely payments to prevent penalties and inconvenience.

This initiative aligns with the Federal Board of Revenue’s (FBR) broader strategy to achieve its December tax collection target of Rs 980 billion. The FBR has so far collected Rs775 billion this fiscal year and has pledged to take firm action against wealthy tax evaders and non-filers to bridge the gap.

The measures aim to reinforce accountability, enhance compliance, and ensure that revenue goals are met for sustained economic growth.