Deadline for Token Tax Payment Extended to January 15 in Islamabad

The Excise and Taxation Department in Islamabad has announced an extension for paying vehicles’ token tax, moving the deadline from December 31 to January 15. This decision will provide vehicle owners with a grace period to comply with the tax regulations.

The department had planned to take strict action against defaulters starting January 1, including canceling vehicle registrations and imposing fines. However, with the revised order, owners who fail to pay the token tax by the new deadline will face severe penalties, including the cancellation of their vehicle registration and a 200% fine for restoration.

To facilitate timely payment, the department has issued a stern warning to defaulters, urging them to clear their dues immediately. Owners of vehicles with smart cards can conveniently pay the token tax through the Islamabad City App. Furthermore, counters at the Islamabad Excise and Taxation Department will remain operational until 8 PM daily to assist citizens.

A software-based system is being used to identify defaulters. Those who fail to comply by the January 15 deadline will face automatic cancellation of their registration. Afterward, they will be required to pay a substantial penalty to reinstate their registration.

According to an official from the department, the decision to take stringent measures stems from the growing number of defaulters over time. Random vehicle inspections are currently being conducted to ensure compliance and normal penalties are imposed on those found in violation. However, the official noted that some defaulters repeatedly evade payment, despite being penalized during previous checks.

In many cases, vehicle owners have neglected to pay their token tax for several years, further complicating the issue. Director of Excise and Taxation, Bilal Azam Khan, has urged all vehicle owners to settle their dues promptly to avoid facing legal consequences.