Islamabad, June 15, 2025: As part of the upcoming 2025-26 federal budget plans, the government is reviewing a proposal to raise taxes on cars with engine capacities ranging between 1300cc and 1800cc. If approved, this measure would result in a 2% tax increase, directly impacting vehicle prices in this popular segment.
Mid-Sized Vehicle Owners to Bear the Brunt
The tax proposal is expected to significantly affect mid-sized sedans and compact SUVs—segments widely favored by middle-income buyers. Vehicles like the Toyota Yaris and Corolla, known for their reliability and fuel efficiency, will see noticeable price adjustments if the tax hike is implemented.
Toyota Car Price Hike Breakdown
Below is a list of Toyota models showing the current and expected prices if the 2% tax increase is enforced:
| Model and Variant | Current Price (PKR) | Expected Price (PKR) |
|---|---|---|
| Yaris Sedan GLI MT 1.3 | 4,479,000 | 4,568,580 |
| Yaris Sedan ATIV MT 1.3 | 4,730,000 | 4,824,600 |
| Yaris Sedan GLI CVT 1.3 | 4,760,000 | 4,855,200 |
| Yaris Sedan ATIV CVT 1.3 | 5,604,000 | 5,716,080 |
| Yaris ATIV X CVT 1.5 (Beige Interior) | 6,215,000 | 6,339,300 |
| Yaris ATIV X CVT 1.5 (Black Interior) | 6,319,000 | 6,445,380 |
| Corolla Altis X Manual 1.6 | 5,969,000 | 6,088,380 |
| Corolla Altis 1.6 X CVT-i | 6,559,000 | 6,690,180 |
| Corolla Altis X CVT-i 1.8 | 6,889,000 | 7,026,780 |
| Corolla Altis 1.6 X CVT-i Special Edition | 7,189,000 | 7,332,780 |
| Corolla Altis Grande X CVT-i 1.8 (Beige Interior) | 7,509,000 | 7,659,180 |
| Corolla Altis Grande X CVT-i 1.8 (Black Interior) | 7,549,000 | 7,699,980 |
Market Reactions and Buyer Concerns
Pakistan’s car market has already seen multiple price surges due to inflation, currency devaluation, and past tax revisions. The proposed tax may trigger another wave of price hikes, particularly straining middle-class consumers who prefer 1300cc to 1800cc vehicles. Industry analysts believe the increased cost of ownership could lead to slowed demand in this category, especially amid ongoing economic challenges.
Read More: New Prices of Honda Cars After Taxes in Budget 2025
As the government finalizes the 2025-26 budget, all eyes remain on this crucial tax decision. If implemented, the Toyota car price hike could redefine affordability in the mid-range vehicle market. Consumers planning a vehicle purchase in this segment might want to act quickly before new prices take effect.
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