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New Budget Hits Middle-Class Car Buyers With Surprise Tax

The federal government has proposed a 1% NEV (New Energy Vehicle) Adoption Levy in the 2025–26 budget, targeting petrol-powered cars with engine capacities ranging from 660cc to 1300cc. The new levy aims to support electric vehicle development and infrastructure by generating revenue from conventional fuel vehicles.

A Modest but Notable Price Hike

The proposed 1% levy would be added to the ex-factory price of eligible vehicles, resulting in modest price increases across some of Pakistan’s most popular small and mid-range car models.

Here’s how the prices are expected to change:

Vehicle Model Current Price (₨) Expected Price (₨)
Suzuki Alto VXR 2,827,000 2,855,270
Suzuki Alto VXR AGS 2,989,000 3,018,890
Suzuki Alto VXL AGS 3,140,000 3,171,400
Suzuki Cultus VXR 4,230,000 4,272,300
Suzuki Cultus VXL 4,316,000 4,359,160
Suzuki Cultus AGS 4,618,000 4,664,180
KIA Picanto 1.0 AT 3,940,000 3,979,400
Honda City 1.2L M/T 4,649,000 4,695,490
Honda City 1.2L CVT 4,689,000 4,735,890
Peugeot 2008 Active 6,600,000 6,666,000
Peugeot 2008 Allure 7,250,000 7,322,500

Purpose Behind the Levy

According to officials, the new levy is designed to generate funding for EV infrastructure and support the government’s broader environmental goals. By shifting a small tax burden onto buyers of internal combustion engine (ICE) vehicles, the policy hopes to gradually steer demand toward greener alternatives.


  • Hum behsaiyat qoum chup rahyn gy tu yea apna zulam kartey rahyn gy. Wo tu awaam ko baywaqoof bana kar, awaam k dilon may apna khauf bitha kar lootey rahyn gy lakin hamey akal nahi aye gi. Chalo koi baat nahi aik khuda kabhi tu Insaaf karey ga

  • Snipers have to be hired to get these corrupt people and their families to their end of life.

    They have caused qiyas and uncertainty in the country and brining the poor nation to their dead end of life.
    Still the Pakistani nation stands divided by saying i am punjabi, i am pushtoon, etc etc and i belong to PTI , i belong to PMLN etc etc. This all is division of the people. We have to stand united against all these corrupt mafias who ever they may be and get rid of them for ever. They don’t deserve to live on this earth

  • If you impose such leaders upon an insensitive people this is bound to happen. In a so-called nation of the super brilliant and the wisest on this Earth, you cannot find an elected Finance Minister and have to resort to appointing former bank Presidents and CEOs, what can one expect. The present Finance Minister as former HBL President drew a salary of two cores per month. He damn cares how the aam aadmi lives.


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