The Punjab government has launched a major crackdown against vehicle owners defaulting on token tax payments, warning that registrations of over 500,000 vehicles across the province will be suspended after October 31. The move aims to boost tax compliance and strengthen fiscal discipline in the transport sector.
With more than 1.4 million registered vehicles in Punjab, token tax is a key annual revenue source for the provincial exchequer. The Excise and Taxation Department has already collected Rs. 5 billion in token tax revenue during the first four months of the current fiscal year. However, nearly 500,000 vehicle owners remain defaulters, prompting authorities to take strict enforcement measures.
According to DG Excise and Taxation Umer Sher Chattha, vehicle owners failing to clear their dues by the October 31 deadline will have their registrations suspended, while persistent defaulters may face vehicle impoundment during road checks.
“We are taking decisive action to ensure accountability. Both unregistered government and private vehicles will be blocked if they fail to comply,” said DG Umer Sher Chattha.
The department has urged all motorists to pay their token tax immediately through official e-pay channels or Excise offices to avoid penalties and disruption in vehicle registration.
Authorities are also integrating the e-pay system with the Punjab Safe Cities Authority (PSCA) for real-time tracking of defaulters. The initiative aims to digitize enforcement, ensure transparency, and recover pending dues efficiently.