Suzuki Alto VXL price rise after new proposed taxes in Budget 2025-26

In a move to boost revenue, the Government of Pakistan has increased the General Sales Tax (GST) on automobiles from 12.5% to 18% and introduced an additional 1% levy on all car sales in the federal budget for FY 2025-26.

The decision has led to a sharp rise in the prices of popular vehicles, including the Suzuki Alto, one of the country’s most affordable cars.

Suzuki Alto Expected Price Hike in Pakistan 2025

The new tax measures have significantly impacted the cost of the Suzuki Alto, with prices expected to rise across all variants:

Consumers and Dealers Express Concerns

“It’s getting harder for the average person to afford even a small car,” said a Lahore-based car dealer, reflecting growing frustration among buyers and sellers. With rising inflation and fuel costs, the additional tax burden is making car ownership even more difficult for middle-class families.

Government Defends Tax Hike

Finance Ministry officials stated that the increase in GST and the new 1% levy are necessary to stabilize the economy and meet tax collection targets for the fiscal year. The measures align with broader fiscal reforms linked to IMF recommendations.

Impact on Hybrid and Electric Vehicles

The new taxes also affect hybrid and electric vehicles (HEVs), with prices expected to rise by over Rs1.4 million. While the government aims to promote eco-friendly transport, the immediate effect is higher costs for conventional car buyers.

As the new budget takes effect, Suzuki Alto—once a budget-friendly option—now faces a significant price jump, raising concerns about affordability in an already strained auto market.