Hybrid cars in Pakistan are expected to become more expensive following the Budget 2026–27, as key tax concessions have ended, increasing the overall indirect tax burden to around 25%.
The price hike is largely due to the expiry of reduced sales tax rates and other exemptions that were not renewed under the new Finance Act.
As a result, imported hybrid vehicles will no longer benefit from the previous tax relief, making them significantly costlier than they were last fiscal year.
The policy is likely to push up prices across both mid-range and premium hybrid models. Analysts believe the higher costs could slow the adoption of hybrid vehicles, with some buyers opting for smaller cars or delaying their purchase decisions because of rising on-road prices.
