Budget 2025-26; Toyota Car Prices after Tax Increase
Web Desk
14 June, 2025 17:07
Toyota Corolla Cross price increased after Budget 2025-26 - check new rates
As discussions continue over the 2025-26 federal budget, the government is weighing a 2% tax hike on cars with engine capacities between 1300cc and 1800cc. If approved, this proposal could lead to a fresh wave of price increases across the country’s mid-size vehicle market.
This tax revision targets a high-demand segment that includes compact sedans and SUVs—cars widely purchased by Pakistan’s middle-class consumers. Among the most impacted brands will be Toyota, whose Yaris and Corolla models dominate this engine category.
Impact on Toyota Car Prices after Tax Increase
The following table outlines the current and expected prices of various Toyota variants after the proposed 2% tax increase:
| Model and Variant | Current Price (PKR) | Expected Price (PKR) |
|---|---|---|
| Yaris Sedan GLI MT 1.3 | 4,479,000 | 4,568,580 |
| Yaris Sedan ATIV MT 1.3 | 4,730,000 | 4,824,600 |
| Yaris Sedan GLI CVT 1.3 | 4,760,000 | 4,855,200 |
| Yaris Sedan ATIV CVT 1.3 | 5,604,000 | 5,716,080 |
| Yaris Sedan ATIV X CVT 1.5 (Beige Int.) | 6,215,000 | 6,339,300 |
| Yaris Sedan ATIV X CVT 1.5 (Black Int.) | 6,319,000 | 6,445,380 |
| Corolla Altis X Manual 1.6 | 5,969,000 | 6,088,380 |
| Corolla Altis 1.6 X CVT-i | 6,559,000 | 6,690,180 |
| Corolla Altis X CVT-i 1.8 | 6,889,000 | 7,026,780 |
| Corolla Altis 1.6 X CVT-i Special Edition | 7,189,000 | 7,332,780 |
| Corolla Altis Grande X CVT-i 1.8 (Beige Int.) | 7,509,000 | 7,659,180 |
| Corolla Altis Grande X CVT-i 1.8 (Black Int.) | 7,549,000 | 7,699,980 |
Market Reaction and Buyer Impact
The automotive industry has already faced multiple rounds of price increases due to currency devaluation, inflation, and previous taxation policies. The proposed tax hike is expected to:
Increase financial burden on middle-income buyers
Reduce new car demand in the 1300cc–1800cc category
Push some buyers toward smaller, less-taxed engine variants
Slow down recovery in an already volatile auto sector
Government’s Justification
Officials argue that the additional revenue from this segment will help address budget deficits and control imported luxury consumption, though industry experts caution it may have unintended consequences for local manufacturers and dealers.
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