ISLAMABAD – June 14, 2025: As part of the proposed 2025–2026 federal budget, the Government of Pakistan has introduced a 2% increase in tax on vehicles with engine capacities between 1300cc and 1800cc. This adjustment is expected to significantly impact the prices of several popular sedans and crossover vehicles, particularly those offered by Honda Atlas in Pakistan.
This tax hike directly targets the mid-engine segment, which includes many of Honda’s most in-demand models. Industry sources indicate that the revised tax policy will result in notable price increases across the Honda lineup, which continues to be a top choice for Pakistani car buyers.
Expected Price Changes for Honda Vehicles
| Model and Variant | Current Price (PKR) | Expected Price (PKR) |
|---|---|---|
| Civic Oriel | 8,659,000 | 8,832,180 |
| Civic RS | 9,899,000 | 10,096,980 |
| City 1.5L CVT | 5,439,000 | 5,547,780 |
| City 1.5L ASPIRE M/T | 5,649,000 | 5,761,980 |
| City 1.5L ASPIRE CVT | 5,849,000 | 5,965,980 |
| BR-V i-VTEC S | 6,299,000 | 6,424,980 |
| HR-V VTi | 7,649,000 | 7,801,980 |
| HR-V VTi-S | 7,899,000 | 8,056,980 |
Read More: New Prices of Suzuki Cars After Taxes in Budget 2025
Price Impact on Honda Cars
According to early estimates:
- The Honda Civic Oriel is expected to see a price jump of approximately PKR 173,180.
- The Honda Civic RS, a higher-end variant, may witness an increase of nearly PKR 198,000.
- Variants of the Honda City, a popular subcompact sedan, will also experience noticeable price increases.
- The Honda HR-V, a compact SUV with a strong market presence in Pakistan, will be affected by the new tax bracket as well.
These increases are directly tied to the engine capacities of these vehicles, which fall within the affected 1300cc–1800cc range. The tax will be levied at the time of vehicle registration or import, depending on the model and purchase channel.
Impact on the Local Car Market
Honda models have long been favored for their durability, resale value, and fuel efficiency in the Pakistani market. With this tax adjustment, prospective buyers may need to revise their budgets, especially for vehicles like the Civic, City, and HR-V, which were previously priced just under key affordability thresholds.
The tax increase will also likely influence overall demand for vehicles in this engine category, as other manufacturers with similar specifications may implement corresponding price revisions to adjust to the new tax burden.
