ISLAMABAD (Kashmir English): The government’s decision to end the General Sales Tax (GST) relief given to locally assembled hybrid cars in Pakistan was implemented on June 30, 2026, after which auto companies started increasing prices.
First, Indus Motor Company (Toyota Pakistan) has increased the price of the Corolla Cross Hybrid by about Rs. 1.4 million, after which its price increased from about Rs. 8.5 million to more than Rs. 10 million.
However, the company has maintained the prices of the petrol variants of the Corolla Cross. The base variant costs about Rs. 7.3 million, while the high-grade variant costs about Rs. 8 million.
What was the tax relief that was ended?
The federal government introduced tax relief for hybrid and other new energy vehicles manufactured in Pakistan in 2021 through an amendment to the Sales Tax Act 1990.
Under this, 8.5 percent GST was applicable on hybrid vehicles up to 1800 cc, and 12.75 percent GST was applicable on hybrid vehicles from 1800 to 2500 cc. The period of this concession expired on June 30, after the approval of the federal budget 2026-27.
The government has not yet issued any new notification in this regard, but auto sector experts say that since the concession period has expired, 18 percent GST is likely to be restored on vehicles up to 1800 cc and 25 percent on vehicles above 1800 cc.
According to estimates by online auto marketplace PakWheels, the prices of locally assembled hybrid vehicles could increase by Rs 1 million to Rs 2 million.
How much can the price of which vehicles increase?
According to PakWheels estimates, the following increase in the prices of various hybrid vehicles is expected after the possible increase in GST.
Toyota Corolla Cross Hybrid – about Rs. 1.4 million (announced)
Haval H6 Hybrid – about Rs. 1.7 million
Honda HR-V Hybrid – about Rs. 1.4 million
Jaico J5 – about Rs. 10 to 13 million
Hyundai Elantra Hybrid – about Rs. 1.5 million
Hyundai Tucson Hybrid – about Rs. 1.8 million
