According to the IMF, there will be an increase of the GST on hybrid vehicles and plug-in hybrid vehicles from 8.5 percent to 18 percent in the June 10 budget, which means that prices will increase between Rs400,000 and Rs1.7 million for all major types of HEV and PHEV.
ISLAMABAD: The market for hybrids in Pakistan is set for its most disruptive budget yet. Pakistan’s budget for 2026-27 will be announced on June 10, and the International Monetary Fund’s drive to increase the General Sales Tax on hybrid and plug-in hybrid electric cars to 18% from whatever it is now will mean adding a whopping sum ranging from Rs400,000 to Rs1.7 million to the cost of all mainstream HEVs and PHEVs being offered in Pakistan. Hybrid cars’ costs in Pakistan’s budget 2026 are the biggest auto story of the year.
Three scenarios for June 10
- Best Case Unlikely
- Government holds HEV GST at 8.5%, reduces PHEV GST to 1% per PAMA’s lobby. Prices stay flat or drop slightly on PHEVs.
- Most Likely Middle Ground
- GST on HEVs rises to 12–14%. PHEVs get differentiated treatment. Expect Rs300,000 to Rs800,000 increases across most models.
- Worst Case IMF Demand
- Full 18% GST across HEVs, PHEVs, and EVs from July 1. Every figure in the tables above becomes the new reality.
Why prices for hybrid cars will experience a budget 2026 crisis
Pakistan is currently implementing an IMF program with high revenues. In fiscal year 2026-27, the FBR is expected to raise about Rs15.3 trillion (an increase of 14% compared to the previous year), while the servicing of debt alone cost Rs8.2 trillion in FY26. In order to make up the difference, it is rumored that the IMF is working to exempt hybrid cars and other electric automobiles from being classified as items listed under the eighth schedule of the Sales Tax Act, which entitles them to GST at just 8.5%.
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The government has tried to take a middle path, which could be GST of around 12%-14% instead of the complete 18%, but there is no surety before June 10. The worse scenario for GST, i.e., at 18%, discussed hereafter is the highest risk each hybrid purchaser could face.
HEV price impact full model breakdown
HEV Worst-Case Prices 18% GST Scenario
| Brand | Model | Current (Rs.) | Tax Hike | New Price |
|---|---|---|---|---|
| Haval | H6 HEV | 11,749,000 | +1,029,000 | 12,778,000 |
| Haval | Jolion HEV | 9,295,000 | +814,000 | 10,109,000 |
| Toyota | Corolla Cross 1.8 HEV | 8,535,000 | +417,000 | 8,952,000 |
| Toyota | Corolla Cross 1.8 HEV X | 8,935,000 | +437,000 | 9,372,000 |
| Hyundai | Elantra Hybrid | 9,895,000 | +484,000 | 10,379,000 |
| Hyundai | Tucson Hybrid Smart | 11,220,000 | +549,000 | 11,769,000 |
| Hyundai | Tucson Hybrid Signature | 12,240,000 | +598,000 | 12,838,000 |
| Hyundai | Palisade Smart | 20,999,000 | +1,027,000 | 22,026,000 |
| Hyundai | Palisade Comfort | 22,999,000 | +1,124,000 | 24,123,000 |
| Hyundai | Santa Fe Smart | 12,450,000 | +609,000 | 13,059,000 |
| Hyundai | Santa Fe Signature | 13,895,000 | +679,000 | 14,574,000 |
| Kia | Sportage L HEV | 11,299,000 | +552,000 | 11,851,000 |
| Kia | Sorento 1.6T HEV FWD | 15,299,000 | +748,000 | 16,047,000 |
| Kia | Sorento 1.6T HEV AWD | 16,699,000 | +816,000 | 17,515,000 |
| Jaecoo | J5 Comfort | 6,699,000 | +587,000 | 7,286,000 |
| Jaecoo | J5 Premium | 7,699,000 | +674,000 | 8,373,000 |
| MG | HS Hybrid+ | 9,499,000 | +832,000 | 10,331,000 |
| Honda | HR-V e:HEV | 8,999,000 | +788,000 | 9,787,000 |
| Tank | Tank 500 HEV | 20,500,000 | +1,002,000 | 21,502,000 |
PHEV price effect complete model explanation
PHEV consumers have been presented with two competing alternatives. On one hand, PAMA is advocating a GST cut for PHEVs to 1%, acknowledging their almost EV-like ability, particularly those that provide 50 kilometers plus of all-electric driving range. On the other hand, the IMF has advocated for 18%.
PHEV Worst-Case Prices 18% GST Scenario
| Brand | Model | Current (Rs.) | Tax Hike | New Price |
|---|---|---|---|---|
| Haval | H6 PHEV | 12,895,000 | +1,129,000 | 14,024,000 |
| MG | HS Super Hybrid | 10,199,000 | +893,000 | 11,092,000 |
| Jaecoo | J7 PHEV | 10,499,000 | +919,000 | 11,418,000 |
| Chery | Tiggo 7 PHEV | 9,499,000 | +832,000 | 10,331,000 |
| Chery | Tiggo 8 PHEV | 11,299,000 | +989,000 | 12,288,000 |
| Chery | Tiggo 9 PHEV | 13,694,000 | +1,199,000 | 14,893,000 |
| GWM | Tank 500 PHEV | 22,500,000 | +1,100,000 | 23,600,000 |
The Invoice Rule What You Need to Know Right Now!
What’s the one thing that stands out the most from last year? Bookings won’t shield you from post-budget hybrid car prices in Pakistan. When GST on HEVs saw an instant spike under the Budget 2025-26, people who had made bookings but did not have invoices issued by the factory prior to June 30th were subjected to the new GST regime without any exceptions.
