Earlier this month, we notified you that the Islamabad Excise and Taxation Department issued a strict deadline for vehicle owners to pay their outstanding token tax within a 15-day period. Failure to comply by December 31, 2024, could result in the cancellation of your vehicle’s registration starting from January 1st.

As of today, December 31st, this blog serves as a crucial reminder for those who have not yet fulfilled their token tax obligations. The Islamabad Excise and Taxation Department may initiate the cancellation of your vehicle’s registration following this date.

How Will This Impact you?

The department’s sophisticated software will automatically identify and flag vehicles with unpaid taxes. Once the deadline passes, registrations will be canceled. To reinstate your registration, you’ll face a substantial penalty—a hefty 200% of the original fine. This drastic measure reflects the growing concern over the increasing number of drivers who neglect their token tax obligations.

Director Bilal Azam Khan strongly urges all vehicle owners to settle their dues immediately, highlighting the serious legal ramifications of non-compliance. While field officers frequently encounter defaulters during road checks, past penalties have proven ineffective in curbing persistent violations. This new approach aims to close this loophole and enforce stricter compliance.

This initiative aligns with the Federal Board of Revenue’s (FBR) broader goal of increasing tax collection. With a target of Rs980 billion by December and only Rs775 billion collected in the first four months of the fiscal year, the FBR is intensifying efforts to recover outstanding dues.

How to Pay Token Tax in Islamabad

After logging in the app, users can choose the Excise and Taxation department which offers several services including online car verification, traffic challan payment, car transfer, token tax payment etc. after this, click on token tax which will generate two options; pay token tax and view paid token tax.

If you want to pay token tax, click on it and scroll through the due payments. You can either pay through 1 BILL which will generate a PSID number or you can pay through e-sahulat which will generate a tracking ID. You can pay your token tax through bank transfer, ATM etc. against these unique IDs easily.

If you haven’t paid your vehicle token tax, please pay it immediately, otherwise your vehicle registration may be canceled.