How much s.234 income tax is collected with the token for my car, for a filer and a non-filer, yearly or as a lump sum?

The income tax collected with a car’s token depends on three things: engine capacity, whether the token is paid yearly or as a lump sum, and whether the owner is on the active taxpayers’ list. The amounts below come from Division III of Part IV of the First Schedule to the Income Tax Ordinance, 2001, as amended to 30 June 2026. They apply to tokens paid in tax year 2027 (1 July 2026 to 30 June 2027).

What does the law say?

Section 234(1) requires any person collecting motor vehicle tax to collect advance tax at the Division III rates. Section 234(2) says that if the motor vehicle tax is collected in instalments or lump sum, “the advance tax may also be collected in instalments” or lump sum in like manner.

Division III, clause (3) sets the amount for “other motor vehicles”, meaning vehicles other than the goods and passenger transport vehicles covered by clauses (1) and (2). Clause (4) applies “where the motor vehicle tax is collected in lump sum”.

Section 100BA says the collection of advance tax from a person not on the active taxpayers’ list “shall be determined in accordance with the rules in the Tenth Schedule”. Rule 1 of the Tenth Schedule says the rate for such persons “shall be increased by hundred percent of the rate specified in” the Ordinance. The only special proviso for vehicles in rule 1 is the two hundred percent increase for section 231B, which does not cover section 234.

How much is collected?

Engine capacity	Yearly, on the list (clause 3)	Yearly, not on the list	Lump sum, on the list (clause 4)	Lump sum, not on the list
Up to 1000cc	Rs. 800	Rs. 1,600	Rs. 10,000	Rs. 20,000
1001cc to 1199cc	Rs. 1,500	Rs. 3,000	Rs. 18,000	Rs. 36,000
1200cc to 1299cc	Rs. 1,750	Rs. 3,500	Rs. 20,000	Rs. 40,000
1300cc to 1499cc	Rs. 2,500	Rs. 5,000	Rs. 30,000	Rs. 60,000
1500cc to 1599cc	Rs. 3,750	Rs. 7,500	Rs. 45,000	Rs. 90,000
1600cc to 1999cc	Rs. 4,500	Rs. 9,000	Rs. 60,000	Rs. 120,000
2000cc and above	Rs. 10,000	Rs. 20,000	Rs. 120,000	Rs. 240,000

The “on the list” columns are copied from clauses (3) and (4). The “not on the list” columns apply the hundred percent increase in rule 1 of the Tenth Schedule, which doubles each amount.

Cars up to 1000cc are not exempt. Clause (3) has a row for them at Rs. 800 a year. Clause (4) does not say how many years a lump-sum payment covers. That depends on the provincial motor vehicle tax arrangement, which is outside this corpus.

Worked example (illustrative figures)

Case 1: yearly token, owner on the list. Usman in Peshawar owns a 1500cc car and is on the active taxpayers’ list. He pays the yearly token in September 2026.

1. Clause (3), row 1500cc to 1599cc: Rs. 3,750.
2. Section 234 tax collected: Rs. 3,750, adjustable in his tax year 2027 return.

Case 2: lump sum, owner not on the list. Farah in Karachi buys a new 1000cc car and pays the token in lump sum. She is not on the active taxpayers’ list.

1. Clause (4), row up to 1000cc: Rs. 10,000.
2. Rule 1 of the Tenth Schedule adds hundred percent: Rs. 10,000 x 100% = Rs. 10,000.
3. Section 234 tax collected: Rs. 10,000 + Rs. 10,000 = Rs. 20,000.

If Farah files her return for tax year 2027 in time for rule 4(3) of the Tenth Schedule, the tax collected under rule 1 is adjustable against the tax payable in that return.

What if I am paying token arrears for past years?

Section 234 does not deal with arrears separately. The advance tax is collected “at the time of” collecting the motor vehicle tax, at the Division III rates in force. Rule 1 of the Tenth Schedule applies to persons not on the active taxpayers’ list, but neither it nor section 234 says whether the owner’s list status on the payment date or in the year the arrear relates to decides the rate. The Ordinance leaves that open.

What if the car is more than ten years old?

Section 234(2A) says no advance tax is collected on motor cars used for more than ten years in Pakistan after a period of ten years. That limit is covered on the linked page about when the token income tax stops.

Common mistakes

• Looking for a non-filer column in Division III. The Finance Act, 2019 removed it. The increase now comes from the Tenth Schedule.
• Tripling instead of doubling. The two hundred percent increase in rule 1 is for section 231B only. For section 234 the general hundred percent increase applies.
• Assuming a lump sum is final. Section 234(5) makes the tax adjustable however it is collected.

What to check in the official text

Read section 234, section 100BA, clauses (3) and (4) of Division III of Part IV of the First Schedule, and rules 1 and 4 of the Tenth Schedule. Section 100BA also mentions persons on the list who file late, but the Tenth Schedule rule that set rates for them, rule 1A, was omitted by the Finance Act, 2026. Confirm your status on the active taxpayers’ list on the day you pay. Provincial motor vehicle tax rates are outside this corpus.