PHEVs and HEVs GST Increase in New Auto policy

[pakwheels.editorial]

According to the information available to me so far, in the new Auto Policy, plug-in hybrid vehicles (PHEVs) and hybrid electric vehicles (HEVs) are to be taxed at a flat 18% GST.

At present, HEVs and PHEVs enjoy reduced GST rates:

• 8.5% GST for engines under 1800cc
• 12.75% GST for engines above 1,800cc

These reduced rates will now be replaced with a single 18% GST for all HEVs and PHEVs.

We also contacted government officials to seek an update. They told us that the Auto Policy has not been finalized yet, and they do not have any new information to share at this stage.

I will share more details once the government releases the final Auto Policy 2026-31 proposal.

[pakwheels.editorial]

but EVs and REEVs 1% GST will remain intact in the new auto policy as well, only HEVs and PHEVs will get expensive

[pakwheels.editorial]

[mkmq]

When will the final proposal be released?

[pakwheels.editorial]

When will the final proposal be released?

Maybe this week's end.

[krafiq]

Any updates on sales tax?

[pakwheels.editorial]

Any updates on sales tax?

According to law. There's a 25% sales tax on hybrids and PHEVs as of now; previously, it was 8.5%.

Yesterday, i published an article and explained this loophole, if you wanna read:

https://www.pakwheels.com/blog/sales-tax-on-hybrid-cars-increases-from-8-5-to-25/

[pakwheels.editorial]

There's a 25% sales tax

actually in new auto policy draft its 18% but until new policy is announced, the law of land is all HEVs and PHEVs will be getting 25% sales tax.