The federal government has officially approved an increase in the General Sales Tax (GST) on vehicles with engine capacities up to 850cc, elevating it from 12.5% to 18%. This measure directly impacts Suzuki Alto and Suzuki Every, the most popular locally assembled new vehicles available in this segment in Pakistan.
In addition to the GST hike, the government has enacted a new Climate Support Levy (CSL) that ranges from 1-3%, but in Alto and Every case, they’ll get a 1% Climate Support Levy. This tax aims to curb pollution from internal combustion engines (ICE), encouraging consumers toward greener, more sustainable transport options like all-electric vehicles.
With the new GST and CSL now in effect, Suzuki Alto buyers might face an immediate price hike ranging between Rs. 167,861 to Rs. 186,446, and for Every, it’ll be 163,230 to 166,198 depending on the specific variant. This increase includes both the raised GST rate and the newly implemented CSL.
However, it’s important to note that these figures are only estimates. It is entirely possible that Suzuki may absorb a portion of the increase, passing on only some of the cost to customers. The final pricing decision rests solely with the company, and these calculations are meant to provide a tentative idea of the maximum possible impact if the entire tax burden is transferred to the buyer.
Suzuki Alto New Expected Price
Here’s the calculation:
| Car Brand | Model | Previous Price (12.5% GST) | Price After 18% GST | 1% Green Tax | Total Expected Price (After All Taxes & GST) |
|---|---|---|---|---|---|
| Suzuki | Alto VXR Upgraded | 2,827,000 | 2,965,209 | 29,652 | 2,994,861 |
| Suzuki | Alto VXR AGS Upgraded | 2,989,000 | 3,135,129 | 31,351 | 3,166,480 |
| Suzuki | Alto VXL AGS Upgraded | 3,140,000 | 3,293,511 | 32,935 | 3,326,446 |
| Suzuki | Every VX | 2,749,000 | 2,883,396 | 28,834 | 2,912,230 |
| Suzuki | Every VXR | 2,799,000 | 2,935,840 | 29,358 | 2,965,198 |
Carbon Tax Introduction
Additionally, the government has now implemented a carbon tax of Rs. 2.5 per liter on fuel consumption. This tax specifically targets vehicles powered by traditional engines, aimed at reducing emissions and promoting the adoption of EVs. The broader goal of this initiative is to significantly decrease Pakistan’s carbon emissions, aligning national policy with international environmental standards.
Clarifying the New Climate Support Levy
The newly implemented CSL is straightforward, calculated as a percentage of the total vehicle price, inclusive of all existing taxes and duties. Its rate depends on the vehicle’s engine size and its manufacturing origin (local or imported):
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Vehicles under 1300cc: taxed at 1%.
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Vehicles between 1300cc and 1800cc: taxed at 2%.
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Vehicles over 1800cc: taxed at 3%.
Sooner or later, we might see the Alto price increase due to these new taxes in budget 2025. Let us know what you think about these taxes and how it will affect the market?
