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You read it right, a new tax on petrol is on its way. There is a plan in the making that will abolish the token tax, transfer fee and the toll tax that we pay on the roads that we pay every day.

Under the new system, if implemented, these three types of taxes and levies will cease to exist in the province.

There is a suggestion before the government to put an extra tax on petrol that could become a source of new revenue stream for the Punjab government.

After collecting this new format of tax, the Punjab government will put an end to the taxes mentioned above.

The suggestion from the excise department is to add Re. 1 tax on every liter of petrol.

Director General Excise, Akram Ashraf Gondal told City42 that there are many complaints from citizens about the corruption in the department and that fake token tax and vehicle transfer slips are the primary issues in those complaints.

Citizens are also annoyed with the long queues on the road on almost every toll tax plaza.

“People wouldn’t need to visit excise offices or wait in queues,” he added.

Punjab excise department collects Rs. Five hundred million from car transfer free, Rs. Seventy-five million from token tax and Rs. 1.5 billion from toll tax every year.

If the government approves the new formula, it will boost the tax revenue and take it to Rs. 12 billion for the provincial government.

Not only the proposal is under consideration, but also there is a debate going on that how a vehicle will be tracked against the tax paid through petrol pumps.


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