Will Cars Become Cheaper After Budget 2026? Suneel Munj Shares Key Predictions

With Budget 2026-27 expected to be unveiled today, car buyers across Pakistan are asking the same question: will vehicle prices finally come down?

According to automobile expert Suneel Munj, buyers expecting major relief may be disappointed.

In a discussion with the PakWheels editorial team, Suneel shared his views on vehicle taxation, EV policy, localization, and why most cars are unlikely to get cheaper anytime soon.

Don’t Expect Any Price Cuts

Suneel Munj states there is almost no chance of price cuts for most vehicle categories. 

The only possible exception could be cars with engines below 800 cc, such as the Suzuki Alto and Every. 

The government might reduce the tax on these two vehicles from 18% to 12.5% to offer some relief.

Prices for all cars above 800 cc will likely remain the same or increase.

IMF Pressure Means Higher Taxes

According to Suneel, the IMF maintains that the government should not provide tax cuts or subsidies on personal vehicles while the country is managing its debt.

He added that even EV-related tax relief may remain limited due to pressure from the IMF. Instead, the IMF wants the state to focus on revenue collection, meaning General Sales Tax (GST) rates will likely rise for EVs and PHEVs.

A “Carbon Tax” is Coming for BigEngines 

Suneel highlighted that combustion-engine vehicles have absolutely no relief or chance of price reductions. 

As part of this strict approach, the government plans to introduce a carbon tax and raise the carbon support levy to increase state revenue.

This tax will be calculated based on the vehicle’s engine capacity (2,000 cc or above). As a result, vehicles with larger engines will face an additional tax (proposed at 10% to 19.5% of the vehicle’s value).

Booking Before Budget May Not Save You From Tax Hikes

A common misunderstanding among buyers is that paying for a vehicle before the budget protects them from new tax rates. 

Suneel Munj warns that this is a huge misconception. He said there’s a rule that you must pay the tax rate in effect when your car is delivered, not when you book it. 

If you pay for a car today, but the government raises the GST next week before the car arrives, you will legally have to pay the extra tax amount before taking your vehicle home. 

Why Pakistan Still Imports So Many Auto Parts

Suneel also addressed a common criticism directed at local assemblers: why aren’t cars manufactured entirely in Pakistan?

According to industry stakeholders, deep localization only becomes commercially viable at significantly higher production volumes.

Until Pakistan’s market reaches roughly 500,000 annual vehicle sales, many suppliers may struggle to justify large-scale investment in local manufacturing.

Summary Takeaway

Suneel’s overall assessment is straightforward: buyers should not expect dramatic reductions in vehicle prices or believe in optimistic rumors. 

The broader policy direction appears focused on revenue generation, environmental taxation, and fiscal stability under the IMF’s austerity measures.

For most buyers, the question is no longer whether cars will become cheaper, but how much more expensive they could become once the budget is announced today at 5 pm. 

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