ISLAMABAD – Bad news for those planning to buy new Electric or Hybrid Vehicles, as Pakistan is considering possible increase in taxes in upcoming Budget 2026–27. Under proposed changes, higher GST rates could raise prices of EVs and hybrids, making them less affordable if the measures are approved, and especially when lot of Pakistanis are considering these option in wake of big jump in Petrol, Diesel Prices.
As of now, EVs are subject to lower GST rate of around 1%, while hybrid vehicles are taxed in the range of 8% to 8.5%, depending on engine capacity. Under the proposed adjustments, EVs could be shifted to the standard 18% GST slab, bringing them in line with conventional vehicles. Hybrid vehicles may also be brought up to 18%, with reports suggesting that larger engine variants could face rates of up to 25%.
EV, Hybrid Expected Prices in Pakistan from July 2026
| Model | Variant | Current Price | Expected New Price |
| Toyota Corolla Cross | 1.8 HEV | 8,535,000 – 8,560,000 | 9,282,000 |
| Toyota Corolla Cross | 1.8 HEV X (Top) | 8,935,000 – 8,960,000 | 9,717,000 |
| Haval Jolion HEV | Standard | 9,290,000 – 9,300,000 | 10,104,000 |
| Haval H6 HEV | Standard | 11,750,000 | 12,779,000 |
| Haval H6 PHEV | Premium | 12,900,000 | 14,030,000 |
| Hyundai Tucson Hybrid | AWD | 12,240,000 | 13,312,000 |
| Hyundai Santa Fe Hybrid/PHEV | – | 13,890,000 | 15,106,000 |
| MG HS PHEV | – | 9,500,000 – 10,200,000 | 10,332,000 |
Electric Vehicles (EVs) – Estimated After Proposed GST Increase
| Model | Variant | Current Price | Est. New Price |
| JMEV EV3 | Comfort | 4,900,000 | 5,725,000 |
| JMEV EV3 | Premium | 5,000,000 | 5,842,000 |
| BYD Atto 2 | – | 7,290,000 | 8,517,000 |
| MG 4 | – | 7,000,000 | 8,178,000 |
| BYD Atto 3 | Advance | 8,990,000 | 10,503,000 |
| MG ZS EV | Base / Mid | 9,690,000 | 11,321,000 |
| MG ZS EV | Top Variants | 15,000,000 | 17,525,000 |
| Dongfeng Vigo E | – | 7,000,000 | 8,178,000 |
| BYD Seal | Dynamic | 14,790,000 | 17,278,000 |
| BYD Seal | Premium | 16,990,000 | 19,848,000 |
| BYD Sealion 7 | – | 15,490,000 | 18,097,000 |
The proposed changes are part of broader efforts to rationalize the tax structure, reduce exemptions, and enhance revenue collection amid fiscal constraints. Authorities are also reviewing existing incentives for new energy vehicles as part of the upcoming policy framework.
If approved, the revisions could have a notable impact on vehicle prices. An Rs8 million vehicle, for instance, could see an increase of over Rs1 million due to higher taxation and related duties, potentially affecting consumer affordability and demand in the segment.
Those familiar with development say the unpopular move may slow growing adoption of EVs and hybrids in Pakistan, which have gained traction in recent years due to lower fuel and maintenance costs.
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