KARACHI – Price shock for Auto sector as several popular Hybrid Cars in Pakistan slapped with a massive tax hike in Budget 2025-26.
The government recently increased the sales tax on hybrid electric vehicles (HEVs) from 8.5% to 18%, leading to a significant rise in prices for popular hybrid models across the country. Last year, hybrids enjoyed a lower tax rate of 8.5%, making them more affordable and encouraging cleaner, fuel-efficient cars on Pakistani roads.
Sharp surge surprised many industry players and buyers alike as the government has not clearly explained the reasoning behind this steep increase, but experts believe it could be aimed at increasing tax revenues or bringing hybrid taxes closer to those of conventional vehicles.
-
Haval H6 HEV: Price jumps by over 1 million
-
Toyota Corolla Cross 1.8 HEV: Nearly 800,000 increase
-
Hyundai Tucson Hybrid Signature: Price up by more than 1 million
-
Kia Sorento 1.6T HEV AWD: Expected to cost 1.4 million more
This increase may discourage potential buyers from choosing hybrids, slowing down their sales and possibly impacting the country’s efforts to reduce fuel imports and emissions.
Car dealerships and importers are now faced with the challenge of adjusting prices and sales strategies in light of the new tax structure, which could affect the overall hybrid market in Pakistan.
Suzuki Alto Expected Price after 18pc GST on cars in Budget 2025-26
