Pakistan, July 6 -- In response to the carbon levy and increased sales tax introduced in the 2025-26 federal budget, several automobile manufacturers in Pakistan have started transferring the added costs to consumers from July 1. Others, however, are either absorbing the cost themselves or delaying price changes until after Ashura.
An official from MG Pakistan confirmed the company would not raise prices, choosing instead to absorb the new levy. Similarly, the assembler of Haval vehicles announced no changes in pricing for now.
The carbon levy, also known as the NEV adoption levy, is now being applied at different rates: 1% on engines under 1300cc, 2% on 1300cc to 1800cc, and 3% on engines above 1800cc-all calculated on the invoice price,...