- SpotMV
- Jun 12, 2026
- Car Price
The General Sales Tax (GST) on Hybrid Electric Vehicles (HEVs) could soon be hiked to 18 percent in Pakistan's automotive market, as the government is mulling over it, according to reports. If it is allowed to be implemented, it will definitely raise the cost of some of the popular hybrid models out there in the country.
It is believed that the upcoming tax revision will impact some of the most popular hybrid crossovers and SUV cars available in Pakistan such as Haval H6 HEV, Honda HR-V e:HEV, Toyota Corolla Cross HEV, MG HS Hybrid+ and JAECOO J5.
Some models are expected to get more expensive by as much as Rs. 400,000 to over Rs. 1 million.
Hybrid Vehicles Face Potential Price Increase
Hybrid cars have become very popular in Pakistan in last few years. When fuel costs are increasing and consumers are seeking more fuel-efficient cars, many are looking to fuel alternative cars as well.
The proposed hike in the Goods and Services Tax (GST) could, however, diminish the affordability benefit that hybrid vehicles enjoy.
If the tax is adopted, industry experts believe car buyers who are considering buying a hybrid may end up paying much more for their vehicles.
Expected New Prices of Popular HEV Models
The current prices of some hybrid models and their estimated tax increase and expected new prices are shown below.
|
Model |
Current Price (Rs.) |
Expected Tax Increase (Rs.) |
Expected New Price (Rs.) |
|
Haval H6 HEV |
11,749,000 |
1,029,000 |
12,778,000 |
|
Haval Jolion HEV |
9,295,000 |
814,000 |
10,109,000 |
|
Toyota Corolla Cross HEV |
8,535,000 |
417,000 |
8,952,000 |
|
Toyota Corolla Cross HEV X |
8,935,000 |
437,000 |
9,372,000 |
|
JAECOO J5 Comfort |
6,699,000 |
587,000 |
7,286,000 |
|
JAECOO J5 Premium |
7,699,000 |
674,000 |
8,373,000 |
|
MG HS Hybrid+ |
9,499,000 |
832,000 |
10,331,000 |
|
Honda HR-V e:HEV |
8,999,000 |
788,000 |
9,787,000 |
|
GWM Tank 500 HEV |
20,500,000 |
1,002,000 |
21,502,000 |
The numbers show that premium hybrid SUVs may go to significantly higher prices and hit several new price benchmarks.
Biggest Increase Expected for Haval H6 HEV
The Haval H6 HEV is likely to see one of the most significant gains in its lineup of vehicles.
The current price of the product is Rs. The hybrid SUV's price could go up to Rs. 11.749 million. 12.778 million (assuming proposed GST structure will be implemented). This would be an addition of more than Rs. It is one of the highest priced hybrid SUVs available locally, at 1 million.
The Haval Jolion HEV is also said to cross the Rs. 10 million mark for the first time.
Impact on Toyota Corolla Cross Buyers
Toyota has built a reputation for its fuel efficiency and reliability, which has led to the Toyota Corolla Cross HEV being one of the most popular hybrid crossovers in Pakistan.
The hike in the Corolla cross variants is lower than some of its rivals, but with the additional expenses of Rs. 417,000 to Rs. Depending on the variant, this figure is 437,000.
This bump might make a difference for many families looking to buy a hybrid SUV.
Honda and MG Buyers May Also Feel the Pressure
The Honda HR-V e:HEV and the MG's HS Hybrid+ have gained traction among consumers seeking up-to-date technology, fuel economy and high-end options.
The HR-V e:HEV might end up in the Rs. The MG HS Hybrid+ could be priced higher at Rs. 9.8 million, 10.3 million.
These hikes may make some potential buyers rethink their budgets, or consider other options.
Luxury Hybrid SUVs Also Affected
The proposed changes will not apply to premium vehicles.
The GWM Tank 500 HEV is available for Rs. There is a possibility of a rise of over Rs. 20.5 million for 20.5 million. The anticipated price of 1 million is now over Rs. 21.5 million.
While the high price sensitive buyer of a luxury vehicle may be less affected by price increases, it can still affect market demand.
Why Is the Government Considering the Tax Increase?
The proposed GST adjustment is said to be part of a bigger revenue generation package which aims to improve tax collection.
Incentives for hybrid vehicles, which are designed to foster environmental-friendly transportation, currently exist, but may be being reviewed in the context of fiscal reforms.
Proponents of the idea say hybrid cars are becoming ubiquitous and should be treated like regular cars.
But opponents say that a higher tax rate would discourage consumers from opting for alternative, less polluting fuel.
Impact on Pakistan’s Green Mobility Goals
Pakistan is slowly transitioning to cleaner modes of transportation. The authors believe that hybrid and electric vehicle use will be regarded as a vital role for lowering fuel consumption and emissions.
The industry believes that the rise in tax on hybrids could delay the shift to green mobility in the country.
Many experts feel that incentives for hybrid and electric vehicles should not be phased out, but continued in the face of high gas prices and environmental issues.
Buyers May Accelerate Purchase Decisions
If prices are going up, it might stimulate people to conclude bookings before any official announcement, which would further boost the demand.
Buyers have been known to visit dealerships more often when taxes are about to be raised or when policies change, as they hope to secure better deals.
If the increase in the proposed GST is enacted, in the near future many of these hybrid vehicles may be a lot more expensive.
Conclusion
The forthcoming hike in GST on hybrid vehicles to 18 percent may see a significant impact on Pakistan's automotive industry. The price increases for popular models like Haval H6 HEV, MG HS Hybrid+, Honda HR-V e:HEV, Toyota Corolla Cross HEV and GWM Tank 500 HEV can be from several hundred thousand rupees to over Rs. 1 million.
The plan, which has not yet been officially announced, has already raised concerns with consumers and industry observers alike. If the buyer is mulling on buying a hybrid, the next few weeks could be defining ones as the government is finalising taxation rules and the automobile industry braces for possible changes.
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