Islamabad Proposes Revised Token Tax Rates for Vehicles Under Finance Bill 2026-27
Motor vehicle owners in Islamabad may face updated token tax rates under the Finance Bill 2026-27, which introduces a revised structure based on engine capacity and invoice value.
According to the proposed plan, vehicles with engine capacity up to 1000cc are expected to be subject to a fixed token tax of Rs. 20,000.
For vehicles ranging from 1001cc to 2000cc, the proposed tax rate will be 0.25% of the vehicle’s invoice value. Similarly, vehicles between 2001cc and 2500cc, as well as those above 2500cc, are proposed to be taxed at 0.35% of their invoice value.
The Finance Bill also outlines separate token tax rates for motor cabs. Under these rates, smaller vehicles up to 1000cc will be charged Rs. 600, while higher categories will face gradually increased fixed charges depending on engine size.
Motor cabs above 2500cc are expected to pay up to Rs. 4,200 under the proposed structure.
The Federal Board of Revenue (FBR) has included these revisions as part of broader adjustments in the upcoming budget framework.
The proposed changes will apply once approved under the final Finance Bill.
