Hybrid Car Prices to Skyrocket by Over Rs 1.4 Million After Budget Bombshell

The federal government has proposed a significant tax hike in its 2025–26 budget, targeting hybrid vehicles with a sharp increase in General Sales Tax (GST) from the existing 8.5% to 18%. This change will lead to a substantial rise in the prices of several popular hybrid models available in Pakistan. As part of broader tax reforms, the government intends to apply a flat 18% GST to all vehicles, whether petrol, diesel, or hybrid. Previously, hybrid vehicles enjoyed a reduced GST rate of 8.5% to incentivize cleaner mobility. The new policy eliminates that advantage. According to data compiled by PakWheels, the following hybrid vehicles will see major price increases if the proposal takes effect: The proposed tax increase has raised concerns among automakers and prospective buyers alike. Hybrid vehicles, often marketed as a fuel-efficient and eco-friendly option, will become significantly less affordable under the new tax regime. Industry experts warn that this move could dampen demand for hybrids and slow the country’s transition to cleaner mobility.