LAHORE: To encourage people to deposit their dues and increase revenue, the Punjab Excise and Taxation (E&T) department has waived off penalty on overdue token tax payments for the vehicles till June 30, restricting this facility to the Lahore-based vehicles.

On the other hand, the department has planned a large-scale crackdown, naming it ‘Operation Sangal Maar’ (chaining), from Tuesday (today) on token tax defaulters owning inter-provincial buses. The action is being taken following reports that some 1,500 vehicles’ owners have to clear outstanding token tax totaling up to Rs350 million, and they are not paying the dues despite repeated warnings.

About the penalty waiver, an official says the exemption is being granted till June 30, and the department has advised the defaulting vehicle owners to avail this opportunity even if heavy penalties have been imposed on them against long-overdue token tax.

This facility has been granted for vehicles of all categories, including cars, motorbikes, trucks, auto rickshaws etc.

“It is hereby notified that the penalty on overdue token tax payments for motor vehicles has been waived off until June 30”, reads the notification issued by Lahore Region-C Excise and Taxation Director Mohammad Asif.

It says that the waiver has been granted to provide relief to the taxpayers and to encourage timely payments of the dues.

“This waiver is effective immediately and applies to all token tax payments made until June 30”, the director says. He explained that no penalties will be imposed on token tax payments made on and before June 30 as notified by the department on June 10.

The notification says the vehicle owners are suggested to utilise this brief period of 20 days to clear any outstanding dues without incurring additional charges.

“The taxpayers can make their payments through designated banks, online portals, designated mobile apps etc”, reads the notification. Similarly, the department issued the ‘last and final’ warning here on Monday to the representatives of the transport owners’ unions, giving them 24 hours to ensure thattoken tax dues for every passenger bus have been cleared.

Mr Asif told Dawn that a significant number of vehicles operating from various bus terminals under the management of the unions have not complied with the mandatory payment of token tax.

He says the unions have been intimated that the payment of token tax is a legal requirement under the Motor Vehicle Ordinance and is crucial for the maintenance and development of transportation infrastructure.

“Non-compliance in this respect not only results in legal penalties for the vehicle owners, but also impacts the revenue collection essential for public welfare projects”, reads a letter addressing the transport unions.

In the letter, the director says the owners have been asked to verify that all vehicles,including buses, vans etc, operating from their respective bus terminals have paid their due token tax.

They have also been asked to perform regular audits to ensure compliance, he says, adding that the vehicles found operating without a valid token tax receipt “should be reported to this office immediately”.

The department has also warned of the consequences of non-compliance, which may include fines, impounding of the vehicle and legal action against the owners.

They have been asked to provide a comprehensive report, detailing the status of token tax payments for all vehicles operating under each terminal’s jurisdiction.

“Following the failure to comply with these instructions, the department is all set to launch operation Sangal Maar,” warns the officer.

Published in Dawn, June 11th, 2024