MG hybrid buyers in Pakistan are facing new pricing as the government allowed reduced 8.5% sales tax concession to end and hybrid vehicles are now subject to the standard 25% rate.
The British auto giant is not passing entire impact to customers at once with phased approach, with the amount buyers pay depending on when they booked and how much they had already paid. MG revealed how it plans to handle Pakistan’s massive hybrid sales tax shock, and some buyers are getting a far better deal than others.
The company joined the growing wave of automakers responding to Pakistan’s sudden increase in sales tax on hybrid vehicles, but the company has taken an unusual route. Rather than immediately passing the entire tax burden on to customers, MG is introducing the impact in phases, with the company absorbing as much as 100% of the additional tax for certain buyers.
The latest adjustment has nothing to do with MG increasing the base prices of its vehicles, but end of special tax treatment previously available to hybrid vehicles. Until June 30, 2026, hybrids were subject to reduced sales tax rate of 8.5%. Once the concession expired without an extension from the government, hybrid vehicles automatically moved back to the standard 25% sales tax rate.
This shows substantial increase in the tax burden and has forced manufacturers across the industry to reconsider their hybrid pricing.
Current listed prices (under previous ~8.5% sales tax concession)
|
Variant
|
Type
|
Ex-Factory Price
|
|---|---|---|
|
MG HS Hybrid+
|
HEV (self-charging)
|
PKR 9,499,000
|
|
MG HS Super Hybrid
|
PHEV (plug-in)
|
PKR 10,199,000
|
Toyota, Honda, Suzuki, Hyundai and Chery have all been affected, with manufacturers adopting different strategies to deal with the additional cost. Some have passed the entire impact on to customers, while others are absorbing a portion themselves, typically between 20% and 50%.
Estimated new prices with full 25% sales tax (if fully passed on)The reduced sales tax rate of 8.5% on hybrid vehicles (HEVs/PHEVs up to 1800cc) expired on 30 June 2026. The standard rate is now 25%.
|
Variant
|
OldPrice (8.5% tax)
|
New Price (25% tax)
|
Approx Increase
|
|---|---|---|---|
|
MG HS Hybrid+
|
PKR 9,499,000
|
10,944,000
|
+ 1,445,000
|
|
MG HS Super Hybrid
|
PKR 10,199,000
|
11,750,000
|
+ 1,551,000
|
MG, however, has opted for a more complicated but potentially more customer-friendly approach.
Customers who booked an HS Hybrid+ or SuperHybrid and completed their full payment by July 31, 2026, are in the strongest position. MG will absorb 100% of the additional tax impact, meaning these buyers will not have to shoulder any of the increase arising from the change in sales tax.
Customers who booked within the same period but made only a partial payment won’t receive the same level of protection. The additional burden will instead be split equally, with MG covering 50% and the customer paying the remaining 50%.
For customers who booked and paid during August, MG has reduced its share slightly. Those who made full payment between August 1 and August 31 will see MG absorb 75% of the additional tax, leaving customers responsible for the remaining 25%. Buyers who made only a partial payment during August will again face a 50-50 split.
