Middle-class car buyers hit by new tax in budget 2025-26

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June, 12 2025
As part of the 2025–26 federal budget, the government has introduced a proposal for a 1% NEV (New Energy Vehicle) Adoption Levy on petrol-powered cars with engine sizes between 660cc and 1300cc.
The purpose of this new levy is to help fund electric vehicle infrastructure and promote cleaner alternatives by collecting revenue from traditional fuel-based cars.
Slight Yet Noticeable Price Increase
This additional 1% charge would be applied to the ex-factory price of affected vehicles, leading to slight but noticeable price hikes for several of Pakistan’s popular small and mid-sized car models.
Expected Price Adjustments:
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