How Much Will Buying a New Car Cost in Pakistan After Budget 2026-27? Potential Price Hikes And Key Tax Changes Explained 

Pakistan Budget 2026-27 cars are expected to become more expensive as the proposed fiscal measures could increase the overall cost of purchasing a new vehicle in the country. Higher General Sales Tax (GST) rates and a revision of Regulatory Duties (RD) under the new tax regime have resulted in a visible hike in prices for various vehicle segments.

Prices could go up 5% to 18% depending on the size of the engine, type of vehicle and whether it’s imported, industry analysts say. But the idea is to get the Pakistani automotive industry up to speed in the long run and slowly push for a more competitive market.

Higher Costs For Budget Cars, Small Cars

Significant changes are expected in areas such as entry-level vehicles. Plans are in place to withdraw the reduced GST rates applicable to small cars up to 850cc.

The standard GST rate of 18%, as against the previous 12.5%, could hike prices of popular budget models by a few lakh rupees. This could be an issue for first-time buyers looking for an affordable way to get around.

Hybrid Cars May Be More Expensive

The GST rates on normal hybrid vehicles could be raised from 9% to 18%. For some locally assembled hybrid vehicles, the lower slabs could continue with suggested rates of 8.5 per cent for engines up to 1800cc and 12.75 per cent for models between 1801cc and 2500cc.

Higher Duties On Imported Cars And EVs

Imported vehicles are likely to see the biggest increases. It suggested increasing regulatory duties on imported conventional cars and hybrids of between 850cc and 1800cc, from 15% to 50%.

Higher GST rates are expected to hit imported electric vehicles, adding more costs to the premium segments. As a result, prices for buyers interested in Completely Built-Up units could skyrocket after the introduction of the new measures.

Long-Term Policy Reforms To Spur Competition

Budget 2026-27 not only provides for immediate cost increases but also introduces structural reforms that are consistent with broader economic goals. In the evolving auto policy framework, we intend to progressively lower customs duties, Additional Customs Duties and protection tariffs.

Buyers May Need To Adjust Budgets

Consumers looking to buy new cars in the months ahead may have to factor in higher upfront costs. GST changes, increased Regulatory Duties and changing tax frameworks will impact final showroom prices.

Visit The Pakistan for more updates.