Cars in Pakistan like Honda Vezel are getting more expensive amid high import duties while taxes imposed by the current government significantly further inflate the prices of imported vehicles, often doubling their original cost.
In Budget 2024-25 announcement, Pakistani government made changes in imported Hybrid Electric Vehicles (HEVs). Similarly, 50percent exemption on customs duties for all imported HEVs had been in place.
After recent changes, Pakistanis importing Hybrid Electric Vehicles HEVs will now be required to pay the full 100% duty without any concessions or discounts previously enjoyed.
Honda Vezel Price Update in Pakistan
| Vehicle | VEZEL RU3 |
| Model | 2019 |
| Old Duty | Rs2,450,000 |
| Expected Changes | Rs3,540,000 |
| Price Difference | Rs1,090,000 |
According to the Federal Board of Revenue (FBR), hybrid electric vehicles (HEVs) with engine capacities up to 1800cc will receive a 50% exemption from duties and taxes, while HEVs ranging from 1800cc to 2500cc will receive a 25% exemption.
Additionally, the Minister proposed eliminating tax exemptions on electric vehicles priced above $50,000, affecting high-end EV purchases. “Buyers of these vehicles will be required to pay applicable taxes and duties,” the Minister clarified.
Regarding local assembly, the current system levies Advance Tax based on engine capacity for cars up to 2000cc. However, due to significant price increases in the automotive sector, the government proposes shifting to a taxation system based on car prices to optimize revenue potential.
These measures represent significant changes proposed by the government for the automotive industry. Further details and clarifications on these tax adjustments are expected as the government elaborates its policies.
