The proposal has predicted increasing the GST from the 8.5% to 18%.
This change will lead to a substantial rise in the prices of several popular hybrid models available in Pakistan.
GST Hike to Impact All Vehicle Types
Under the government’s new tax reform plan, a uniform 18% General Sales Tax (GST) will be applied to all vehicle types—petrol, diesel, and hybrid. This marks the end of the previously reduced 8.5% GST rate that was offered on hybrid vehicles to promote environmentally friendly transport options.
Also Read: Budget 2025-26: How much tax will be deducted from your salary now?
Hybrid Car Prices Set to Rise Sharply
According to data from PakWheels, several popular hybrid models are expected to see significant price increases if this proposal is implemented.
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Industry Reactions
The proposed tax revision has sparked concern among both car manufacturers and potential buyers. Hybrids—widely promoted as economical and eco-conscious—are likely to become far less affordable, potentially discouraging consumers and slowing down the shift toward greener transportation. Industry analysts caution that the move may hinder progress in sustainable mobility.
