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HomePakistanBad News for Token Tax Defaulters as Excise warns of 100pc Penalty...

Bad News for Token Tax Defaulters as Excise warns of 100pc Penalty Surcharge, Car Seizures


LAHORE – A strict warning has been issued across Punjab as Excise Department moves into high-pressure recovery phase against token tax defaulters. With financial year nearing its end, authorities announced that unpaid dues will no longer be ignored, defaulters now face a 100% penalty surcharge along with the risk of having their vehicles seized on the spot.

Punjab Excise, Taxation and Narcotics Control Department announced province-wide crackdown on tax defaulters, signaling one of the toughest financial recovery drives in recent years.

D.G Excise Omar Sher Chatha, defaulters of token tax are now on strict notice, immediate payment of outstanding dues is mandatory, or they will face 100% penalty surcharge. Authorities have confirmed that no leniency will be shown as the department moves into the final month of the financial year with high-pressure recovery campaign.

Under the new province-wide operation, vehicles with unpaid token tax will be impounded on the spot, while unregistered vehicles will also face strict legal action across Punjab. Officials say targeted raids and enforcement checks will be intensified in all districts.

DG revealed a major financial milestone, stating that the department has collected a staggering Rs. 70 billion during the first 11 months of the current fiscal year, an increase of Rs. 15 billion compared to the entire previous year’s total collections.

Rs40 billion has been recovered through motor vehicle tax, while Rs. 25 billion has come from property tax collections, reflecting what officials describe as “record-breaking compliance and enforcement efficiency.”

The crackdown is not limited to vehicle taxes. Authorities have also ordered strict action against property tax defaulters, including the sealing of commercial properties found in violation. For residential property owners failing to clear dues, officials will issue attachment notices under the Land Revenue Act, paving the way for potential confiscation proceedings.

In an even stronger escalation, the Excise Department has directed field officers to further tighten operations for the recovery of professional tax and excise duty, ensuring no defaulter is left unchecked in the province-wide campaign.

Officials describe the drive as one of the most comprehensive enforcement actions in recent years, as Punjab is moving into an uncompromising era of tax recovery and compliance enforcement.

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