1.0L vs 1.3L vs 1.5L Engines in Pakistan: Token Tax Impact, Fuel Mileage & Ownership Cost Comparison

If you are deciding between a Suzuki Cultus, a Toyota Yaris 1.3, and a Honda City 1.5, the engine size on the brochure is only half the story. The real question is what each one actually costs you every year after you drive it home, in token tax, fuel, and the small print most buyers only discover at the excise counter. A 1.0L car engine can cost as little as PKR 20,000 in lifetime token tax in Punjab, while a 1.5L sedan can add PKR 15,000 to 20,000 a year just in provincial tax, before fuel is even factored in.

Quick Answer Box

Token tax figures above are based on published 2026-27 rates and change with each province’s Finance Act, so always confirm the exact figure on your province’s excise portal before budgeting.

Why You Are Actually Searching for This

Nobody types this exact question into Google out of curiosity. You are almost certainly standing at one of two decision points. Either you are choosing between two specific cars right now, maybe a Cultus and a Yaris, and the salesman has not mentioned a single word about what happens after the purchase. Or you already own a 1.0L car and are wondering if upgrading to a 1.3L or 1.5L is worth the extra fuel and tax burden every single month for the next several years.

Both situations share the same underlying fear. Nobody wants to sign for a car, feel proud driving it home, and then get hit with a token tax bill or a fuel cost that quietly eats a much bigger chunk of the monthly budget than expected. This guide exists to remove that surprise entirely, with real numbers, not brochure promises.

How Token Tax Actually Works in Pakistan (And Why It Changed)

Token tax used to be simple. You picked your engine size, paid a flat annual amount, and moved on. That system still exists in some provinces, but Punjab and Islamabad Capital Territory shifted the rules under the Finance Act 2026, effective from July 1, 2026, and it directly affects anyone comparing a 1.0L, 1.3L, or 1.5L car right now.

Punjab and Islamabad (ICT)

Cars up to 1000cc still get the simplest treatment. In Punjab this is a one-time lifetime token tax of Rs 20,000, up from the earlier Rs 15,000. In Islamabad it is charged as a fixed annual amount of Rs 20,000. Either way, this is the single biggest reason the 1.0L segment remains the cheapest to register and keep on the road year after year.

Once you cross 1000cc, both Punjab and Islamabad now calculate token tax as a percentage of the car’s original invoice value, not a flat rate tied to engine size alone. In Islamabad, the rate is 0.25% of invoice value annually across the entire 1001cc to 2000cc range, meaning a 1.3L and a 1.5L car in the same price bracket pay a similar percentage, but a more expensive trim within either bracket pays more in absolute rupees. Punjab previously charged 0.2% of invoice value for the same bracket, with the Punjab Finance Bill 2026-27 proposing a further increase, so Punjab owners should expect this figure to rise and should verify the current rate through the Excise and Taxation Department before registering.

This is the detail most car buyers never see coming. Two people can buy the exact same 1.5L Honda City, but if one bought a higher trim with a bigger invoice price, they will pay more in annual token tax for the rest of that registration, even though the engine size is identical.

Sindh and Khyber Pakhtunkhwa

Sindh and KP have stayed with the older flat-rate-by-engine-size model rather than moving to invoice-based taxation. In Sindh, cars up to 1000cc pay roughly Rs 1,500 a year, or a one-time Rs 20,000 option at first registration. The 1001cc to 1300cc bracket sits around Rs 2,000 a year, and 1301cc to 1600cc moves up to roughly Rs 4,000 a year. In KP, the equivalent brackets run close to Rs 2,000, Rs 3,000, and Rs 4,000 a year respectively. These are meaningfully lower than what an invoice-based Punjab or Islamabad calculation can produce on a higher-trim 1.3L or 1.5L car, so where you register genuinely changes your annual bill.

The Federal Charge Nobody Explains Clearly

On top of provincial token tax, every car owner also pays a separate federal advance income tax under Section 234 of the Income Tax Ordinance, collected at the same counter when you pay your token. This is engine-size based nationwide and is where being a tax filer starts to matter financially. Roughly speaking, a car up to 1000cc pays around Rs 800 a year if the owner is a filer, doubling to around Rs 1,600 for a non-filer. A 1300cc to 1499cc car sits closer to Rs 2,500 to 3,000 for filers and Rs 5,000 to 6,000 for non-filers. A 1500cc to 1599cc car runs approximately Rs 3,750 to 4,500 for filers and Rs 7,500 to 9,000 for non-filers. These are indicative figures that move with each year’s Finance Act, so treat them as a planning estimate rather than a final number, and confirm the exact figure through FBR or your excise counter before paying.

The pattern across every table here is consistent. Moving from 1.0L to 1.3L to 1.5L does not just cost you more upfront and more in fuel, it also compounds through both provincial and federal tax brackets every single year you own the car.

Fuel Mileage: What Each Engine Class Actually Costs to Drive

At today’s petrol price of roughly PKR 325 per liter, the difference between engine classes shows up fastest in your monthly fuel spend, and this is usually the number that decides the argument in most households.

1.0L Segment (Up to 1000cc)

The Suzuki Alto VXL AGS, at 660cc, delivers the best fuel average on this entire list at 18 to 20 km/l city and 20 to 22 km/l highway, priced from PKR 29.9 to 33.3 lac new. The Suzuki WagonR VXL AGS and Suzuki Cultus VXL AGS, both at 998cc, run close behind at 16 to 18 km/l city, priced from PKR 32.1 to 37.4 lac and PKR 40.9 to 45.9 lac respectively. For someone driving roughly 1,500 km a month, a Cultus at 17 km/l averages out to about PKR 344,000 a year in fuel at current prices, the lowest fuel bill of any car in this comparison.

1.3L Segment (Roughly 1197cc to 1370cc)

This bracket covers the Suzuki Swift GL/GLX CVT at 1197cc, the Toyota Yaris 1.3 GLi at 1329cc, the Changan Alsvin 1.3 Comfort at 1370cc, and the Honda City 1.2 CVT at 1199cc. Prices range from around PKR 42 lac for the Alsvin’s base trim to roughly PKR 47.7 lac for the Swift GLX CVT. Fuel average across this class sits at 12 to 16 km/l city depending on model and driving style, with the Alsvin and Swift generally performing better on the highway at 17 to 20 km/l. At an average of 14.5 km/l, the same 1,500 km monthly driver spends roughly PKR 404,000 a year on fuel, about 17% more than the 1.0L Cultus for a car that offers noticeably more highway confidence, features, and in the Swift’s case, six airbags instead of two.

1.5L Segment (1480cc to 1500cc)

The Honda City 1.5L Aspire CVT, at 1497cc, is priced from roughly PKR 60.7 to 61.5 lac and returns 14 to 16 km/l city. The Toyota Yaris 1.5 ATIV X CVT, at 1496cc, sits close by at PKR 46.5 to 60.5 lac depending on trim and returns roughly 12 to 15 km/l city. Both trade a noticeably lower fuel average for stronger acceleration and a more relaxed highway cruising feel, particularly useful if intercity travel is a regular part of your driving. At 15 km/l average, our same 1,500 km monthly driver spends close to PKR 390,500 a year on fuel, similar to the 1.3L bracket in raw fuel cost but on a purchase price that is 25 to 30% higher.

Illustrative 5-Year Ownership Cost Comparison

To put this together honestly, here is what a Suzuki Cultus VXL AGS (1.0L), a Toyota Yaris 1.3 GLi (1.3L), and a Honda City 1.5L Aspire CVT actually cost over five years of ownership, assuming 18,000 km driven annually, Punjab registration with invoice-based token tax on the 1.3L and 1.5L cars, and today’s petrol price. This excludes servicing, insurance, and depreciation, which vary too much by individual driving habits and location to state as a fixed number.

The gap between the 1.0L and 1.3L car over five years works out to roughly PKR 6 lac, largely driven by the higher purchase price rather than fuel or tax alone. The jump from 1.3L to 1.5L adds nearly PKR 14 lac more, again mostly from the higher sticker price of the Honda City, since its fuel average is actually close to the Yaris despite the larger engine. This is the number that should genuinely guide your decision, not the token tax line item alone, since purchase price still dominates total ownership cost far more than most buyers assume.

Buying Used in Each Engine Class: The Smarter Entry Point

If the new price gap above feels heavy, buying used inside any of these three engine classes can shrink it dramatically while keeping the same fuel and tax profile, since token tax and fuel average are tied to the engine, not the car’s age.

A used Suzuki Cultus AGS from 2019 to 2021 typically trades between PKR 27 and 38 lac depending on mileage and condition, already well below the new price while keeping the exact same 16 to 18 km/l fuel average and the same low token tax bracket. A used Toyota Yaris from 2021 to 2024 generally runs PKR 40 to 52 lac, and a used Honda City CVT from 2020 to 2021 typically sits around PKR 43 to 49 lac, both offering the same running costs as new but at a meaningfully lower entry price.

The catch with buying used at any engine size is that Pakistan’s second-hand market carries real risk that a spec sheet cannot warn you about. A car with a genuinely clean mechanical history and one with hidden accident damage or a tampered odometer can look identical in photos and drive similarly on a short test drive, while costing you far more down the line in repairs that erase any savings from buying used in the first place.

This is exactly why we recommend never finalizing a used car purchase, in any engine class, without an independent check first. Wise Wheels’ 200+ point car inspection service examines the engine, transmission, suspension, chassis, and paint depth across every panel, giving you a written report before you commit any money, so the fuel and tax savings you calculated above are not quietly wiped out by a repair bill nobody warned you about.

If you are looking at an imported Japanese unit in any of these engine brackets, such as a JDM Alto, Passo, or Vitz, the risk shifts specifically to the auction sheet. A poorly graded or accident-damaged import can be repainted and sold as a clean unit, and almost no buyer in Pakistan can read the original Japanese documentation to verify it themselves. Wise Wheels’ auction sheet verification service confirms the true grade, mileage, and accident history behind the car’s chassis number directly from the Japanese record, before you agree on a price.

And when you are ready to actually shortlist cars rather than just calculate numbers, browsing through the Wise Wheels Verified Used Cars Marketplace means every listing you look at has already been filtered for clear pricing, mileage, and location details, so you are comparing real options rather than gambling on an unknown classified ad.

Which Engine Size Actually Makes Sense for You

If your driving is almost entirely inside the city, mostly short trips under 15 km, and your budget is the deciding factor, a 1.0L car like the Alto AGS or Cultus AGS remains the cheapest to buy, tax, and fuel by a clear margin, and the token tax advantage alone in Punjab and Islamabad is difficult to ignore.

If you regularly drive on the motorway, carry passengers on longer trips, or simply want a car that does not feel strained overtaking on the GT Road, a 1.3L car like the Yaris 1.3, Alsvin 1.3, or Swift CVT closes most of that comfort gap for a fuel cost increase that is smaller than most people expect, though the invoice-based token tax in Punjab and Islamabad does add a genuine recurring cost worth factoring in.

A 1.5L car only really earns its higher price and tax bracket if you need the extra power regularly, whether for highway-heavy routines, carrying a full family often, or simply wanting the most relaxed driving experience available in this segment. For a first car or a tight budget, it is rarely the rational financial choice once token tax and fuel are added up honestly over several years.

Frequently Asked Questions

How much token tax do I pay on a 1000cc car in Pakistan? 

In Punjab, a car up to 1000cc pays a one-time lifetime token tax of Rs 20,000. In Islamabad, it is a fixed annual Rs 20,000. In Sindh, it is roughly Rs 1,500 a year or a one-time Rs 20,000 option at registration, and in KP it runs close to Rs 2,000 a year.

How is token tax calculated for a 1300cc or 1500cc car in 2026? 

In Punjab and Islamabad, cars from 1001cc to 2000cc are now taxed as a percentage of the vehicle’s original invoice value, roughly 0.2 to 0.25%, rather than a flat rate. This means a higher trim of the same 1.3L or 1.5L car pays more in absolute rupees each year. Sindh and KP still use flat annual rates by engine bracket instead.

Is a 1.3L car engine much more expensive to run than a 1.0L car engine in Pakistan? 

Fuel cost is roughly 10 to 20% higher for a 1.3L car compared to a 1.0L car under similar driving conditions, and token tax adds a further recurring cost in Punjab and Islamabad due to invoice-based calculation. Over five years, the total gap is usually driven more by the higher purchase price of the 1.3L car than by fuel or tax alone.

Does being a tax filer reduce my token tax? 

Filer status mainly affects the separate federal advance income tax collected under Section 234 at the same counter, not the provincial token tax itself. Non-filers typically pay roughly double the federal charge compared to filers across every engine bracket, which adds up meaningfully over several years of ownership.

Should I buy a 1.0L, 1.3L, or 1.5L engine if I mostly drive in the city? 

For mostly city driving under 15 km per trip, a 1.0L engine offers the lowest combined fuel and token tax cost by a clear margin. A 1.3L or 1.5L engine only becomes worthwhile if you regularly drive longer distances, carry more passengers, or specifically value the extra power and features those engine classes bring.

Final Word

The engine size on a brochure only tells you what the car feels like to drive. What actually determines whether you can comfortably afford it for the next five years is the combination shown here, purchase price, provincial token tax, the federal charge collected alongside it, and real-world fuel average under your own driving pattern. Run these numbers against your actual monthly kilometers before you decide, and if you are buying used to close the price gap, get the car inspected and its documents verified before you pay, so the savings you calculated on paper are the savings you actually keep.

Not sure how to read a Japanese auction sheet? Wise Wheels can help you understand auction grades, mileage information, damage markings, and other details before you make a purchase.