As part of the 2025-26 federal budget discussions, the government is considering a proposal to increase taxes on vehicles with engine capacities between 1300cc and 1800cc. The proposed measure would result in a 2 percent tax hike for cars in this segment.
If implemented, the 2 percent tax increase will directly affect the prices of popular mid-sized vehicles, including sedans and compact SUVs. This adjustment is expected to raise the overall cost of ownership for consumers considering vehicles within the 1300cc to 1800cc range.
The following table shows the current and expected prices for various Toyota models and variants after the proposed tax increase:
| Model and Variant | Current Price (PKR) | Expected Price (PKR) |
|---|---|---|
| Yaris Sedan GLI MT 1.3 | 4,479,000 | 4,568,580 |
| Yaris Sedan ATIV MT 1.3 | 4,730,000 | 4,824,600 |
| Yaris Sedan GLI CVT 1.3 | 4,760,000 | 4,855,200 |
| Yaris Sedan ATIV CVT 1.3 | 5,604,000 | 5,716,080 |
| Yaris Sedan ATIV X CVT 1.5 Beige Int. | 6,215,000 | 6,339,300 |
| Yaris Sedan ATIV X CVT 1.5 Black Int. | 6,319,000 | 6,445,380 |
| Corolla Altis X Manual 1.6 | 5,969,000 | 6,088,380 |
| Corolla Altis 1.6 X CVT-i | 6,559,000 | 6,690,180 |
| Corolla Altis X CVT-i 1.8 | 6,889,000 | 7,026,780 |
| Corolla Altis 1.6 X CVT-i Special Ed. | 7,189,000 | 7,332,780 |
| Corolla Altis Grande X CVT-i 1.8 Beige Int. | 7,509,000 | 7,659,180 |
| Corolla Altis Grande X CVT-i 1.8 Black Int. | 7,549,000 | 7,699,980 |
The automotive market has already experienced several price adjustments in recent years due to currency fluctuations, inflation, and previous tax changes. The proposed tax hike may further impact demand, especially among middle-class buyers who typically opt for vehicles in this engine category.