LAHORE – Budget 2025 proposed several taxes on cars over 850cc including Green Tax on locally assembled cars, including Toyota models. This will raise prices of Toyota Corolla Altis by about Rs120,000–150,000.
Sharif led government introduced a series of tax and policy reforms targeting Pakistan’s automotive sector in the newly unveiled Budget 2025–26.
Corolla Altis Expected Prices
| Model | Current Price | Tax (2%) | Expected Price |
|---|---|---|---|
| Altis X Manual 1.6 | 5,969,000 | 119,380 | 6,088,380 |
| Altis 1.6 X CVT-i | 6,559,000 | 131,180 | 6,690,180 |
| Altis X CVT-i 1.8 | 6,889,000 | 137,780 | 7,026,780 |
| Altis 1.6 X CVT-i SE | 7,189,000 | 143,780 | 7,332,780 |
| Grande X CVT-i 1.8 (Beige) | 7,509,000 | 150,180 | 7,659,180 |
| Grande X CVT-i 1.8 (Black) | 7,549,000 | 150,980 | 7,699,980 |
Toyota Yaris Expected Prices
| Model | Price | Tax (2%) | Expected Price |
|---|---|---|---|
| GLI MT 1.3 | 4,479,000 | 89,580 | 4,568,580 |
| ATIV MT 1.3 | 4,730,000 | 94,600 | 4,824,600 |
| GLI CVT 1.3 | 4,760,000 | 95,200 | 4,855,200 |
| ATIV CVT 1.3 | 5,604,000 | 112,080 | 5,716,080 |
| ATIV X CVT 1.5 (Beige) | 6,255,000 | 125,100 | 6,380,100 |
| ATIV X CVT 1.5 (Black) | 6,319,000 | 126,380 | 6,445,380 |
Among changes is imposition of a Green Tax on all internal combustion engine (ICE) vehicles. This new levy applies to both imported and locally assembled cars, with the government aiming to steer the market toward electric and alternative fuel vehicles.
Under new structure, cars with smaller engines (under 1300cc) will be taxed at 1pc of their total value. Mid-range vehicles (1300cc–1800cc) face a 2% charge, while high-end cars with engines above 1800cc will be taxed at 3%. Commercial vehicles including buses and trucks will incur a flat 1% tax, regardless of size or origin.
Besides this, the government increased General Sales Tax (GST) on small cars with engine capacities up to 850cc from 12.5 to 18pc. This change directly impacts vehicles like the Suzuki Alto, currently the only locally manufactured car in this segment. Industry analysts estimate this will lead to a retail price hike of between Rs. 163,000 and Rs. 186,000, depending on the model variant.
The budget also introduces Carbon Levy on petroleum products, further escalating the cost of vehicle ownership. The levy will begin at Rs. 2.5 per liter in the 2025–26 fiscal year and double to Rs. 5 per liter the following year. The move is intended to reduce fossil fuel consumption and fund green infrastructure projects.
The automotive industry, already grappling with high inflation and declining consumer demand, is expected to face short-term challenges due to these reforms. However, government officials argue that the long-term benefits—such as reduced environmental impact and stronger energy independence—justify the immediate financial strain.
Toyota Corolla Cross Expected Price in Pakistan after New Sales Tax in Budget 2025-26
