Budget 2026-27: Govt increases duties on SUVs, luxury cars and high-end EVs

The federal government has announced new and higher taxes on imported and luxury vehicles in the Budget 2026-27.

According to the budget, increased duties have been imposed on imported SUVs with engine capacities between 2,000cc and 3,000cc. Taxes on vehicles above 3,000cc have also been raised.

The government says the move is aimed at reducing luxury imports, increasing tax revenue, and easing pressure on the country’s foreign exchange reserves.

Luxury Electric Vehicles Also Included

The new budget also introduces taxes on luxury electric vehicles (EVs) worth more than Rs20 million.

This means that high-end electric cars imported into Pakistan will now face additional taxation, affecting premium international brands and luxury vehicle buyers.

Action Against Fuel Adulteration

In a separate measure, the government has imposed an excise duty of Rs80 per litre on white spirit and mineral turpentine oil.

Officials say these substances are often used in fuel adulteration. The new duty aims to discourage illegal fuel mixing practices that can damage vehicles and machinery.

The government believes these measures will help improve tax collection, reduce unnecessary imports, and support economic stability.