The Punjab Excise and Taxation Department is preparing a province-wide crackdown on tax defaulters from October 1, 2026.
The enforcement drive will target people with unpaid token tax and outstanding property tax dues. Vehicle owners have until September 30 to clear their token tax under routine payment terms.
However, motorists who remain in default after the deadline will face a 100% penalty on their unpaid token tax. They will have to pay the outstanding tax along with an equal amount as a penalty.
Token Tax Deadline Set for September 30
According to Excise officials, vehicle owners can settle their outstanding token tax by September 30 without the additional penalty.
After the deadline, the department will apply an equal penalty to the unpaid amount. Therefore, motorists with pending token tax have been advised to make payments before October 1.
The enforcement action forms part of the department’s broader effort to recover outstanding provincial taxes.
Vehicle taxation in Punjab operates under the relevant provincial laws. Meanwhile, the Excise Department provides an online facility for citizens to check and pay their dues.
Property Taxpayers Get Final Chance for 5% Concession
Property taxpayers have likewise been given September 30 as the deadline to benefit from a 5% concession.
After the deadline passes, the department will introduce stricter recovery measures against defaulters. In particular, long-term commercial property defaulters could face sealing action from October 1.
Officials said the enforcement campaign will focus especially on commercial properties that have remained in default for several years.
The move is aimed at recovering outstanding property tax from taxpayers who have continued to delay their payments.
Who Will Face Action From October 1?
The crackdown will cover both vehicle owners with unpaid token tax and property taxpayers with outstanding dues.
For vehicle owners, the key consequence will be the additional 100% penalty after September 30. For eligible property taxpayers, the 5% concession will no longer be available after the deadline.
Meanwhile, long-term commercial property defaulters could face sealing action once the enforcement campaign begins.
The department has therefore urged taxpayers to clear their outstanding dues before the deadline. Doing so would help them avoid additional financial penalties and possible recovery action.
Excise Department Targets Rs125 Billion Revenue
The intensified recovery campaign is linked to the Punjab Excise and Taxation Department’s revenue target of Rs125 billion.
Officials said the department is taking all possible measures to recover outstanding dues from defaulters. The province-wide enforcement campaign will consequently focus on improving tax recovery.
The Excise and Taxation Department administers urban immovable property tax across Punjab. It also handles motor vehicle registration and taxation in the province.
With September 30 approaching, taxpayers with outstanding dues have been advised to settle their payments before stricter measures begin.
From October 1, 2026, the department will move towards stronger enforcement against remaining token and property tax defaulters across Punjab.
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