Hybrid electric vehicle (HEV) buyers may face significantly higher costs if the federal government approves a proposal to increase the General Sales Tax (GST) on hybrid vehicles to 18 percent in Budget 2026-27.
The proposed measure is part of broader discussions on rationalizing tax concessions for hybrid and electric vehicles. Industry reports suggest that changes to the current tax regime could lead to sharp increases in vehicle prices across several popular HEV models.
Popular Hybrid Models Could Become More Expensive
According to projected estimates circulating within the auto industry, some of Pakistan’s most popular hybrid vehicles could witness price hikes ranging from more than Rs400,000 to over Rs1 million if the proposed GST rate comes into effect.
The biggest increase is expected for the GWM Haval H6 HEV. Its current price of Rs11.749 million could rise by approximately Rs1.029 million, taking the vehicle’s expected new price to Rs12.778 million.
Similarly, the GWM Tank 500 HEV could become costlier by around Rs1.002 million. Its projected price would increase from Rs20.5 million to Rs21.502 million.
Toyota Corolla Cross Also Expected to See Price Jump
Toyota’s hybrid crossover lineup is also likely to be affected.
The Corolla Cross 1.8 HEV, currently priced at Rs8.535 million, could increase by around Rs417,000, bringing its expected price to Rs8.952 million.
Meanwhile, the Corolla Cross 1.8 HEV X could witness a rise of approximately Rs437,000, pushing its projected price to Rs9.372 million.
Honda, MG and Jaecoo Models on the List
Honda’s HR-V e:HEV may also become more expensive under the proposed tax structure. The hybrid crossover’s price could increase by about Rs788,000, taking it from Rs8.999 million to Rs9.787 million.
MG’s HS Hybrid+ is expected to see an increase of roughly Rs832,000. If approved, the vehicle’s price could rise from Rs9.499 million to Rs10.331 million.
Meanwhile, Jaecoo’s J5 Comfort and J5 Premium models could also face substantial increases. The J5 Comfort may rise from Rs6.699 million to Rs7.286 million, while the J5 Premium could increase from Rs7.699 million to Rs8.373 million.
Auto Industry Awaits Budget Announcement
The auto sector is closely watching the upcoming federal budget as uncertainty surrounds tax incentives for hybrid and electric vehicles. Recent industry discussions have highlighted concerns that reducing tax concessions could slow the adoption of cleaner vehicles in Pakistan.
While the projected prices have generated concern among prospective buyers, the proposed GST increase has not yet been approved. The final decision will be announced when the government unveils the Federal Budget 2026-27.
Until then, consumers and automakers remain on alert, as any change in the tax structure could significantly affect the cost of hybrid vehicles across Pakistan.