Pakistan’s federal government has proposed a sweeping increase in General Sales Tax (GST) under the 2025–26 budget, particularly impacting the prices of hybrid vehicles.
The decision has sparked alarm among automakers and consumers as prices are expected to surge by over Rs. 1.4 million for some models.
Previously, hybrid cars enjoyed a reduced 8.5% GST to encourage environmentally friendly alternatives. However, the new proposal seeks to impose a flat 18% GST on all vehicle types, petrol, diesel, and hybrid alike, eliminating tax-based incentives for cleaner mobility.
The revised tax structure will significantly increase the costs of several leading hybrid vehicles. Based on figures compiled by PakWheels, here are some of the most affected models:
| Model | Old Price (8.5% GST) | New Price (18% GST) | Price Increase |
| Haval H6 HEV 1.5L | ₨ 11,749,000 | ₨ 12,777,714 | ₨ 1,028,714 |
| Haval Jolion 1.5L | ₨ 9,295,000 | ₨ 10,108,848 | ₨ 813,848 |
| Toyota Corolla Cross 1.8 HEV | ₨ 8,999,000 | ₨ 9,786,931 | ₨ 787,931 |
| Toyota Corolla Cross 1.8 HEV X | ₨ 9,449,000 | ₨ 10,276,332 | ₨ 827,332 |
| Hyundai Elantra Hybrid 1.6L | ₨ 9,700,000 | ₨ 10,549,309 | ₨ 849,309 |
| Hyundai Tucson Hybrid Smart 1.6L | ₨ 10,999,000 | ₨ 11,962,046 | ₨ 963,046 |
| Hyundai Tucson Hybrid Signature 1.6L | ₨ 11,999,000 | ₨ 13,049,604 | ₨ 1,050,604 |
| Hyundai Santa Fe Smart 1.6L | ₨ 12,490,000 | ₨ 13,583,594 | ₨ 1,093,594 |
| Hyundai Santa Fe Signature 1.6L | ₨ 13,899,000 | ₨ 15,115,963 | ₨ 1,216,963 |
| Kia Sportage L HEV 1.6L | ₨ 10,999,000 | ₨ 11,962,046 | ₨ 963,046 |
| Kia Sorento 1.6T HEV FWD | ₨ 14,699,000 | ₨ 15,986,009 | ₨ 1,287,009 |
| Kia Sorento 1.6T HEV AWD | ₨ 15,999,000 | ₨ 17,399,834 | ₨ 1,400,834 |
| MG HS PHEV 1.5L | ₨ 9,699,000 | ₨ 10,548,221 | ₨ 849,221 |
The automotive sector is voicing strong concerns over the policy change. Industry insiders argue that hybrid vehicles, promoted for their fuel efficiency and environmental benefits, will become far less accessible.
Experts fear this sharp price escalation may discourage the adoption of greener vehicles and stall Pakistan’s transition to cleaner transportation options.
If implemented, the uniform GST policy will reshape the automotive landscape, making hybrid cars a luxury rather than a sustainable choice. With prices climbing by over Rs. 1.4 million in some cases, both industry players and eco-conscious consumers are left questioning the government’s commitment to green mobility.