by In the 2025–26 federal budget, the government of Pakistan introduced several new levies impacting internal combustion engine (ICE) and hybrid vehicles. As a result, Toyota dealers have announced price increases across their lineup—from budget-friendly sedans to hybrid SUVs.
Why Prices Are Rising
- Green Tax on ICE Vehicles
- Locally assembled/imported cars with engine capacities:
- Under 1300cc: +1%
- 1300–1800cc: +2%
- Above 1800cc: +3%
- Locally assembled/imported cars with engine capacities:
- GST Increase on Small Cars
- Sales Tax on vehicles ≤850cc rose from 12.5% → 18%, affecting cars like the Alto (not Toyota)
- GST on Hybrids
- Though initially flagged for increase in the budget speech, the Finance Bill shows no GST rise for hybrids—they remain taxed at 8.5% (≤1800cc) and 12.75% (1801–2500cc) until June 2026.
📈 Toyota Price Hikes Overview
Toyota Yaris & Corolla—2% Tax on 1300–1800cc
| Model | Prev. Price (PKR) | New Price (PKR) | Increase |
|---|---|---|---|
| Yaris GLi MT 1.3 | 4,479,000 | 4,568,580 | +89,580 |
| Yaris ATIV MT 1.3 | 4,730,000 | 4,824,600 | +94,600 |
| Yaris GLi CVT 1.3 | 4,760,000 | 4,855,200 | +95,200 |
| Yaris ATIV CVT 1.3 | 5,604,000 | 5,716,080 | +112,080 |
| Yaris ATIV X CVT 1.5 (Beige) | 6,215,000 | 6,339,300 | +125,300 |
| Corolla Altis X Manual 1.6 | 5,969,000 | 6,088,380 | +119,380 |
| Corolla Altis 1.6 X CVT‑i | 6,559,000 | 6,690,180 | +131,180 |
| Corolla Altis X CVT‑i 1.8 | 6,889,000 | 7,026,780 | +137,780 |
| Corolla Altis Grande X 1.8 | ~7,500,000 | ~7,659,000 | +159,000 (est.) |
Toyota Corolla Cross 1.8 HEV Hybrid
| Model | Prev. Price (PKR) | Expected (PKR) | Increase |
|---|---|---|---|
| Corolla Cross 1.8 HEV | 8,999,000 | 9,786,000 | +787,000 |
| Corolla Cross 1.8 HEV X | 9,449,000 | 10,276,000 | +827,000 |
➡️ Note: The hybrid models see a steep jump due to GST jump from 8.5% → 18%, despite ambiguity over the final decision.
Market Impacts & Consumer Outlook
- Mid-sector vehicles like the Yaris and Corolla will see price hikes of PKR 90,000–150,000.
- Hybrids face a much larger shock—up to PKR 1 million, threatening consumer interest and adoption of greener options.
- Rising carbon and environmental levies, along with fuel taxes, compound the vehicle cost.
- Meanwhile, import duty reductions could soften long-term pricing—but the immediate impact is upward .
🧭 Final Thoughts
As of June 13, 2025, these tax adjustments are enacted within the budget law. Buyers should:
- Act quickly on hybrid models before possible further GST hikes next fiscal year.
- Focus on sudden price changes in sedans like Yaris and Corolla—they’re now costlier, albeit by more manageable margins.
- Monitor announcements—future NBUD 2026–27 may introduce further taxes, green levies, or EV incentives.
✅ Takeaway
The Toyota lineup in Pakistan has been hit by rising taxes:
- Yaris & Corolla: +2% green tax → PKR 100–160k hike.
- Corolla Cross Hybrid: Potentially +PKR 800k via GST hike.
- Next year: Hybrid buyers should stay alert—GST could climb further.
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