The government has just announced a big change for hybrid electric cars (HEVs): the sales tax on them is going up from 8.5% to 18%. This is a pretty noticeable increase, especially because for the past year, this tax stayed at a low 8.5%. That lower rate was generally seen as a way to help more people buy these fuel-efficient cars.
Here’s a simple look at the old tax versus the new tax for different brand new car models:
| Car Brand | Model | Engine | Price 8.5% GST (PKR) | Price 18% GST (PKR) | Expected Increase (PKR) |
|
Haval
|
H6 HEV | 1.5l | 11,749,000 | 12,777,714 | 1,028,714 |
| Jolion HEV | 1.5l | 9,295,000 | 10,108,848 | 813,848 | |
|
Toyota
|
Corolla Cross 1.8 HEV | 1.8l | 8,999,000 | 9,786,931 | 787,931 |
| Corolla Cross 1.8 HEV X | 1.8l | 9,449,000 | 10,276,332 | 827,332 | |
|
Hyundai
|
Elantra Hybrid | 1.6l | 9,700,000 | 10,549,309 | 849,309 |
| Tucson Hybrid Smart | 1.6l | 10,999,000 | 11,962,046 | 963,046 | |
| Tucson Hybrid Signature | 1.6l | 11,999,000 | 13,049,604 | 1,050,604 | |
| Santa Fe Smart | 1.6l | 12,490,000 | 13,583,594 | 1,093,594 | |
| Santa Fe Signature | 1.6l | 13,899,000 | 15,115,963 | 1,216,963 | |
|
Kia
|
Sportage L HEV | 1.6l | 10,999,000 | 11,962,046 | 963,046 |
| KIA Sorento 1.6T HEV FWD | 1.6l | 14,699,000 | 15,986,009 | 1,287,009 | |
| KIA Sorento 1.6T HEV AWD | 1.6l | 15,999,000 | 17,399,834 | 1,400,834 | |
| MG | HS PHEV | 1.5l | 9,699,000 | 10,548,221 | 849,221 |
Last year, the government kept the tax on HEVs steady at 8.5%. This was good news for anyone thinking about buying a hybrid because it made them more affordable. It was also seen as a step by the government to encourage cleaner cars on the roads and reduce how much fuel the country imports. This steady tax rate also made it easier for car dealers and importers to plan their business.
However, this new announcement changes things quite a bit. Doubling the sales tax to 18% has surprised many people. The government hasn’t fully explained why they’ve made this sudden change. Some in the car industry think it might be because the government needs to collect more tax money, or maybe they want to make the taxes on hybrids more similar to other types of cars.
What this means for you, the car buyer, is that HEVs will now cost more. This could make fewer people want to buy them, which might slow down the sales of these cars. Car dealerships and importers, who set their prices based on the old tax rate, will now have to figure out new prices and manage their car stocks differently.
