No higher tax for hybrid cars as govt changes course

No higher tax for hybrid cars as govt changes course
June, 18 2025
ISLAMABAD (Web Desk): Federal government cancels the plan to raise the sales tax on hybrid cars with engines upto 1800 cc.
Rs7 billion would have been produced by authorities in supplementary revenue if the federal government had adopted the plan to raise tax.
The National Assembly Standing Committee on Finance reviewed the plan and cancelled the increment. As per the original budget plan, the hybrid vehicle tax was going to increase by 12.5 per cent to 18 per cent; now the 12.5 per cent rate will continue.
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Until June 2026, sales tax rates on hybrid cars cannot be increased; however, the plan to raise the tax on cars up to 850 cc from 12.5 per cent to 18 per cent is still the government s intention, as they have not cancelled the budget plan.