Islamabad: The National Assembly Standing Committee on Finance has approved an increase in token tax on vehicles in Islamabad.
According to DC Islamabad, the token tax was not increased
in the city after 2019, while other provinces have already increased. The
meeting was informed that a one-time fixed tax of Rs 10,000 is imposed on
vehicles up to 1000 cc, a token tax of Rs 20,000 has been proposed for models
before 2010.
Similarly, a tax of 0.3% of the invoice value is being
imposed on vehicles from 1000 to 1300 cc, which has been proposed to be reduced
to 0.25%.
According to DC Islamabad, the token tax on vehicles after
2010 will be Rs 6,200, while earlier it was Rs 1,500. The meeting was informed
that the token tax on a vehicle worth Rs 2 million would be Rs 6,200.
It was further said that Rs 3.9 billion has been collected
from vehicles in Islamabad this year as token tax, while if the proposed
increase is implemented, this revenue could reach Rs 5.2 billion. In the
meeting, members raised questions on the tax system. Committee member Javed
Hanif Khan said that citizens are already paying various taxes and further
burden is not appropriate.
Committee member Sharmila Farooqui also opposed the increase
and said that this tax is a burden on the middle class. While Hina Rabbani Khar
raised a question as to why the token tax is not collected for a long period
instead of collecting it every year.
Members also said that the current revenue is sufficient for
the maintenance of Islamabad’s roads and no further tax is needed.
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