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Motor vehicle owners in the Islamabad Capital Territory (ICT) could face higher token taxes under the Finance Bill 2026-27, which sets revised rates based on engine capacity and invoice value.
Under the proposed rates, vehicles with engine capacities of up to 1000cc will be subject to a token tax of Rs. 20,000. Vehicles with engine capacities from 1001cc to 1300cc, 1301cc to 1500cc and 1501cc to 2000cc will be charged token tax at 0.25 percent of the invoice value.
For vehicles with engine capacities from 2001cc to 2500cc and those above 2500cc, token tax will be charged at 0.35 percent of the invoice value.
The Finance Bill also specifies token tax rates for motor cabs. Vehicles with engine capacities of up to 1000cc will pay Rs. 600, while those exceeding 1000cc but not more than 1300cc will be charged Rs. 1,000.
Motor cabs with engine capacities exceeding 1300cc but not more than 1500cc will pay Rs. 1,700, while those above 2500cc will be charged Rs. 4,200. The Federal Board of Revenue (FBR) has included token tax rates for public transport and commercial transport vehicles in the Finance Bill 2026-27.