Token Tax Punjab 2025: Avoid Suspension, Pay Dues Now

The Punjab Government has announced a strict crackdown on vehicle owners who fail to pay their annual token tax by the October 31, 2025 deadline. This bold move by the Punjab Excise and Taxation Department aims to ensure tax compliance, strengthen financial discipline, and close the revenue gaps caused by persistent defaulters. The government has confirmed that it will suspend the registrations of all token tax defaulters, preventing them from legally operating their vehicles on public roads.

Massive Action Against Token Tax Defaulters Across Punjab

According to the latest official data, the Excise and Taxation Department Punjab has identified more than 1.4 million registered vehicles with unpaid token taxes. Out of these, approximately 900,000 owners have cleared their dues, while over 500,000 vehicles remain in default. In response, the department has initiated a province-wide enforcement drive that will directly impact all non-compliant vehicle owners.

This crackdown marks a major policy shift in Punjab’s fiscal administration, demonstrating the government’s intent to enforce accountability and improve tax collection efficiency. The department will automatically suspend the registrations of vehicles operating without cleared token taxes, blocking their renewal, transfer, or any official transaction until the owners pay all dues.

Deadline and Enforcement Details

Vehicle owners across Punjab must pay their annual token tax before October 31, 2025. The Excise and Taxation Department has made it clear that no extensions or grace periods will be granted beyond this date. After the deadline:

• Registrations of defaulting vehicles will be suspended immediately.
• Vehicle data will be flagged in the Punjab Safe Cities Authority (PSCA) database.
• Owners will be unable to renew registration, transfer ownership, or pay motor insurance until dues are cleared.
• Vehicles may be impounded at checkpoints during routine inspections.

The department introduced this measure to curb habitual defaulters and ensure every registered vehicle pays its due share to the provincial treasury.

What Happens When Registration Is Suspended

Once the department suspends a vehicle’s registration for non-payment of token tax, it immediately enforces several restrictions.

1. No Road Access: The vehicle becomes legally ineligible to operate on any public road in Punjab.
2. Traffic Penalties: Police and enforcement authorities can fine, detain, or impound vehicles with suspended registrations.
3. Insurance and Transfer Block: Such vehicles cannot be sold, transferred, or insured until reactivation.
4. Digital Lock in ePay & MTMIS: Online systems like MTMIS Punjab and ePay Punjab will restrict digital access to the vehicle record until outstanding dues are paid.
5. Permanent Blacklisting: Continuous non-payment may result in permanent blacklisting of the registration number.

To avoid these severe consequences, the department strongly urges vehicle owners to clear their token taxes well before the October 31 deadline.

Purpose Behind the Crackdown

The Punjab Government’s decision to take firm action against token tax defaulters aims to achieve several key objectives:

• Enhancing Revenue Generation: Token tax is a major source of income for the provincial government, helping fund public infrastructure, roads, and safety projects.
• Promoting Financial Responsibility: Many vehicle owners delay or neglect their annual tax payments. This campaign encourages consistent compliance.
• Closing Fiscal Gaps: The crackdown will help recover billions of rupees in unpaid taxes.
• Ensuring Fairness: Compliant taxpayers will finally receive fair treatment, while defaulters will no longer escape accountability.
• Strengthening Digital Governance: Integrating vehicle databases and tax systems improves transparency and enforcement efficiency.

How to Check Your Token Tax Status Online

Before enforcement begins, the department advises all vehicle owners to verify their token tax payment status through the official Punjab MTMIS (Motor Transport Management Information System) or the ePay Punjab App.

Follow these steps to check your status:

1. Visit https://mtmis.excise.punjab.gov.pk
2. Enter your vehicle registration number in the search bar.
3. Review your vehicle details and token tax history.
4. If “Tax Paid Till” date has expired, you must make the payment immediately.
5. Use ePay Punjab (mobile app or website) to pay the dues online.

Digital payment methods include credit/debit cards, JazzCash, Easypaisa, and online banking, making it convenient for owners to stay compliant without visiting physical offices.

How to Pay Vehicle Token Tax in Punjab

The Punjab Excise Department has streamlined the process, making token tax payments easy, transparent, and fully digital.

Option 1: Pay via ePay Punjab App

• Download ePay Punjab App from Google Play or Apple App Store.
• Select the Excise and Taxation category.
• Enter your vehicle registration details.
• Choose Token Tax Payment option.
• Pay securely using your preferred digital method.

Option 2: Pay via ATM or Online Banking

• Visit your bank’s internet or mobile banking portal.
• Select the Excise & Taxation Punjab payment option.
• Enter your PSID (Payment Slip ID) generated from the ePay portal.
• Confirm and complete the payment.

Option 3: Pay at Excise Office

ChatGPT said:

Vehicle owners who prefer in-person transactions can pay their token tax at any Excise and Taxation office across Punjab. Bring your original CNIC, registration book, and previous payment receipt.

Number of Vehicles Affected by the Crackdown

The Director General of Excise and Taxation Punjab confirmed that out of 1.4 million vehicles with unpaid token tax records, approximately 900,000 owners have now paid, while 500,000 remain non-compliant. These half a million vehicles are at immediate risk of registration suspension if dues remain unpaid beyond October 31, 2025.

The government expects to recover hundreds of millions of rupees in pending taxes through this campaign, helping stabilize the province’s fiscal management and support its development programs.

Digital Monitoring and Enforcement Mechanism

The Excise Department has integrated its systems with the Punjab Safe Cities Authority (PSCA) and traffic police databases. This allows real-time vehicle tracking through number plate recognition technology.

When a vehicle with unpaid token tax or a suspended registration passes through a Safe City surveillance camera, the system automatically flags it for enforcement action. The system alerts the nearest traffic police checkpoint, enabling enforcement officers to stop the vehicle immediately.

This integration ensures 100% traceability and transparent enforcement, eliminating the chance for habitual defaulters to evade accountability.

Legal Implications for Defaulters

Under the Punjab Motor Vehicle Ordinance and Excise and Taxation Act, driving a vehicle with unpaid token tax or suspended registration constitutes a legal offense. Consequences include:

• Heavy fines under Section 6 of the Motor Vehicle Taxation Rules.
• Vehicle impoundment until tax clearance.
• Possible court summons for repeated offenses.
• Additional late payment penalties and surcharges.

The Excise Department, Traffic Police, and District Administration will coordinate to strictly enforce legal action.

Public Response and Awareness Campaigns

To ensure compliance, the Punjab Government has launched an awareness campaign across print, electronic, and digital media. Billboards, radio announcements, and social media posts are informing citizens about the October 31 deadline and penalties for defaulters.

In addition, the department is sending SMS alerts to registered vehicle owners to remind them to pay their token taxes on time. The department has also set up helplines and information desks in all major cities, including Lahore, Faisalabad, Multan, Rawalpindi, and Gujranwala.

Benefits of Timely Token Tax Payment

Paying token tax on time offers multiple advantages to vehicle owners:

• Legal Peace of Mind: Avoid fines, registration suspension, and traffic penalties.
• Better Resale Value: Vehicles with up-to-date tax records sell faster and at better prices.
• Hassle-Free Renewals: Smooth registration and transfer process through MTMIS.
• Contribution to Infrastructure: Tax revenue supports road maintenance and development.
• Digital Compliance Record: Builds a positive record in Punjab’s Excise database.

Timely compliance reflects financial discipline and civic responsibility, contributing to a cleaner, more efficient transportation system.

What to Do If Your Registration Is Suspended

If the department has already suspended your vehicle registration due to non-payment, follow these steps to reactivate it:

1. Pay All Outstanding Token Taxes through ePay Punjab or at your local Excise office.
2. Clear Any Fines or Late Penalties associated with the suspension.
3. Submit Proof of Payment to the Excise and Taxation Department.
4. Wait for the digital update in MTMIS (usually within 48 hours).
5. Once cleared, your registration will be reactivated automatically.

Make sure to keep digital and printed receipts as proof of compliance during traffic checks.

Expert Insight: Why Financial Compliance Matters

Financial analysts and governance experts have praised the move, calling it a necessary step toward fiscal responsibility. They argue that consistent enforcement will help curb tax evasion, ensure fair revenue distribution, and promote trust in government systems.

This initiative also aligns with Pakistan’s broader digital governance vision, emphasizing accountability, transparency, and automation in public service delivery.

Conclusion

The Punjab Government’s 2025 crackdown on token tax defaulters sends a clear message: no vehicle will be allowed on the road without full compliance. With over 500,000 vehicles facing registration suspension, the government urges all owners to act quickly and pay their dues before the October 31, 2025 deadline.

At its core, this campaign is about more than enforcement—it’s about building a culture of responsibility, fairness, and fiscal discipline. As citizens, timely token tax payment is our shared duty to ensure better roads, improved public services, and a transparent governance system for all.

Also read: Vehicles Without Green Stickers to Be Banned Now in Punjab