Suzuki WagonR, Suzuki Alto Token Tax Update

Suzuki WagonR 998cc and Suzuki Alto 660cc are required to pay the one-time token tax at the time of purchasing the car

The Punjab Excise and Taxation Department mandates that vehicle owners pay a token tax based on their engine capacity to avoid fines or legal action.

This tax is a crucial levy for the department, generating substantial revenue and contributing significantly to the exchequer. Its administration falls under the Motor Vehicle Ordinance, 1965, and the Motor Vehicle Tax Act, 1958.

While the token tax is typically collected annually, the department offers a one-time lifetime token tax for certain vehicles with engine capacities up to 1000cc.

The annual token tax amount varies depending on the vehicle type, engine capacity, and age.

For Suzuki WagonR 998cc and Suzuki Alto 660cc, both categorized as 1000cc vehicles, the one-time token tax is payable at the time of car purchase.

According to the official website, the token tax for both WagonR and Alto is identical since they belong to the same category of vehicles with engine capacities up to 1000cc.

As of October 2024, the excise department collects Rs20,000 in token tax on Suzuki WagonR and Alto.

"If engine power up to 1000cc, is transferred within ten years of such registration, an amount of Rs.20,000/- with a rebate equal to 10% for each financial year, shall be charged," as per the official statement.