Pakistan’s 2025–26 budget struck Toyota consumers with a vengeance. Legislators floated it initially on June 10 and approved it by June 26. Exorbitant taxes now drive up prices on best-selling models. Owners bite the bullet today.
New Green Tax On Mid-Range Cars
The budget imposed a new “green” tax. Vehicles with 1.3–1.8 L engines are subject to a 2% additional federal excise duty. Toyota Yaris and Corolla are included in that category. Anticipate a steep increase in their price tags.
Price Adjustments on Yaris and Corolla
Rates were already adjusted by Toyota dealers. A Yaris GLI 1.3 MT now retails for approximately ₨ 4.57M, up from ₨ 4.48M. The CVT variants increased equally. Corolla Altis models increased by ₨ 120K–150K. The 1.6 L Altis now begins at around ₨ 6.09M. The 1.8 L Grande versions peak at near ₨ 7.7 M.
Apart from the green levy, the budget reduced GST relief on small vehicles and hybrids. Most cars now pay 18% duty. A carbon fuel levy was also brought in by the government—₨ 2.50 per litre. All drivers are pushed towards higher costs with these steps.
Import Duty Reduction Benefits Luxury Models
The government reduced import taxes on parts and vehicles. Regulatory duty fell from 90% to 50%. ACD came down a bit as well. That reduction benefited high-end SUVs such as the Land Cruiser and Lexus. But it did not make up for new levies. Luxury models thus became less expensive by just a little bit.
The most squeezed are middle-class consumers. Corolla and Yaris prices now surpass affordability levels. Toyota’s sedan business slows down. Dealers notice increasing bookings prior to tax imposition.
Chance for Toyota?
Lower import duties and parts suggest long-term gains. Toyota Indus might receive cheaper components. However, taxes remain painful on finished cars. Toyota might retaliate with new trim levels or price reductions later. Or grant financing offers to keep up.
The budget is pro-electric cars. EVs now pay only 1% tax on local assembly and components. Toyota can catch the wave—if it promotes EVs or hybrids. Plans for the local assembly of EVs will be time-consuming, though.
Hit List: Toyota Models and Budget Impact
- Toyota Yaris (1.3 L): Price increased by ₨ 90–130K.
- Toyota Yaris (1.5 L CVT): Increase of ₨ 125–130K.
- Corolla Altis (1.6 L): Hike of ~₨ 120–150K.
- Corolla Altis (1.8 L Grande): Now near ₨ 7.7 M.
What Buyers Should Do
Need a Toyota in a hurry? Purchase quickly. That saves you extra duties. Thinking of a hybrid? Negotiate bundle packages with Toyota. Look at imported luxury models; they received modest relief. Watch out for upcoming EV deals.
Budget 2025–26 jolts Pakistan’s automobile industry. Toyota motorists notice a mid-size sedan’s increase in price. Luxury imports receive modest relief. EVs receive a clear stimulus. Buyers encounter harder choices today and tomorrow.
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