Pakistan’s GST hike lifts hybrid car prices as Toyota and Honda add over Rs1.3m
AI Market Summary
Pakistan raised GST on hybrid vehicles to 25% from 8.5%, prompting immediate price hikes by Toyota and Honda and temporary invoicing/delivery suspensions by other assemblers amid delays in the 2026–31 Auto Policy. The policy vacuum plus higher taxes likely weakens near-term demand for electrified vehicles and disrupts local supply chains, while broader tariff rationalisation offers limited relief for local assemblers operating under concessionary import regimes.
Impact level
● Low
Affected assets
NCCOGOLD2USD/USDT-0.24%
AI Insight · NCCOGOLD2USD/USDTAI Insight
▼ Bearish
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Pakistan has raised the general sales tax (GST) on hybrid electric vehicles (HEVs) to 25% from 8.5%, prompting local assemblers to increase prices immediately. Toyota and Honda lifted prices on models including the Corolla Cross HEV and HR-Ve by more than Rs1.3 million, while other makers paused HEV invoicing and deliveries. The moves come as the 2026–31 Auto Policy has yet to be notified, creating uncertainty after the previous regime expired.
