Pakistan, June 11 -- The federal government has proposed increasing the General Sales Tax (GST) on hybrid vehicles from 8.5% to 18% in the 2025-26 budget. This change is expected to raise prices of many popular hybrid car models by PKR 1 to 1.4 million across Pakistan, making these eco-friendly options less affordable for buyers.

According to ProPakistani, the government aims to apply a uniform 18% GST on all types of vehicles - petrol, diesel, and hybrid - as part of broader tax reforms. Previously, hybrids benefited from a lower GST rate to encourage their adoption, but this incentive will be removed, potentially discouraging environmentally friendly vehicle purchases.

Data from PakWheels reveals that popular hybrid models, currently ...