Islamabad, June 28, 2025: Car prices in Pakistan, including popular Honda City snd Civic models, are expected to go up significantly after the government announced new taxes in the Budget 2025–26.
The new Climate Support Levy will be charged on the original price of vehicles, adding extra cost for buyers. The government says this move is aimed at encouraging cleaner, more eco-friendly vehicles and boosting revenue.
Climate Support Levy:
- 1% tax on cars with smaller engines up to 1300cc
- 2% tax on mid-size engines from 1301cc to 1800cc
- 3% tax on bigger engines above 1800cc
The tax will directly increase the price by thousands, with an estimated hike of up to half a million rupees for larger cars.
READ MORE: New Prices of Honda Cars After Taxes in Budget 2025
Honda City Expected New Prices
| Model | Old Price (PKR) | New Tax (PKR) | New Price (PKR) |
|---|---|---|---|
| City 1.2L M/T | 4,649,000 | 46,490 | 4,695,490 |
| City 1.2L CVT | 4,689,000 | 46,890 | 4,735,890 |
| City 1.5L CVT | 5,439,000 | 108,780 | 5,547,780 |
| City 1.5L Aspire M/T | 5,649,000 | 112,980 | 5,761,980 |
| City 1.5L Aspire CVT | 5,849,000 | 116,980 | 5,965,980 |
Honda Civic Expected New Prices
| Model | Old Price (PKR) | New Tax (PKR) | New Price (PKR) |
|---|---|---|---|
| Civic Oriel | 8,659,000 | 173,180 | 8,832,180 |
| Civic RS | 9,899,000 | 197,980 | 10,096,980 |
READ MORE: New Honda CB150F Launched with Fresh Stickers
What Else Will Be Affected
The price incease won’t stop at Honda. Other popular models like the Toyota Corolla Cross, Kia Sportage Hybrid, and other local hybrids will also become more expensive due to the new tax.
How much buyers end up paying will depend on the model and engine size — but one thing is clear: owning a car in Pakistan is about to get costlier from July 2025 onwards.
