ISLAMABAD – Budget 2025-26 was expected to bring sigh of relief for auto enthusiasts, but there is no hope as the government is taking stern measures to rake in revenue.
In a move sending ripples through Pakistan’s automotive market, the federal government announced a steep increase in General Sales Tax (GST) on hybrid electric vehicles (HEVs), raising it from 8.5pc to 18pc which led to a price surge for several hybrid SUVs including Toyota Corolla Cross.
Toyota Corolla Cross Price Update
| Model | Current Price | Expected Price | Increase |
|---|---|---|---|
| Corolla Cross 1.8 HEV | 8,999,000 | 9,786,000 | 788,000 |
| Corolla Cross 1.8 HEV X | 9,449,000 | 10,276,000 | 825,000 |
The price of the Toyota Corolla Cross 1.8 HEV is expected to jump from Rs 8,999,000 to Rs 9.786 million, marking an increase of nearly Rs 788,000. while Toyota Corolla Cross 1.8 HEV X, a higher-end variant, now costs Rs 10,.276, up from Rs 9,449,000.
The recent budget reversed that direction, with HEVs and even small-engine cars now subject to the full 18% Sales Tax. The auto sector, already under pressure from high inflation and a depreciating rupee in the last 3 years, reacted with disappointment.
Industry insiders warn that the sudden increase could deal a blow to consumer interest in hybrid vehicles — especially high-end models like the Corolla Cross.
“This is a setback for the promotion of environmentally friendly transportation,” said a senior executive at an auto dealership in Lahore. “Just when the market was warming up to hybrids like the Corolla Cross, the price hike could push them out of reach for many potential buyers.”
The government’s broader fiscal measures also include increased GST on vehicles below 850cc — such as the popular Suzuki Alto — and revised customs and regulatory duty structures. While these reforms aim to streamline taxation, they currently exclude automobiles listed under Chapter 87 of the Pakistan Customs Tariff.
Token tax update for Suzuki Alto, other 1000cc cars ahead of Budget 2025-26
