There is good news for car buyers in Pakistan. The upcoming Budget 2025–26 may bring a reduction in car prices for the first time in years.
According to sources, the federal government is likely to present the budget on June 2. However, the final date will be confirmed after discussions with the International Monetary Fund (IMF).
The government is planning tax relief in various sectors and is considering a tax revenue target of Rs 14,305 billion. Talks with the IMF on tax policies are still ongoing.
Possible Tax Cuts on Vehicles and Auto Parts
As part of the upcoming budget, there are proposals to reduce taxes on cars and auto parts. A 20% reduction in customs duties on vehicles is being discussed. Currently, these duties range from 15% to 90%. If approved, this could lead to a noticeable decrease in car prices across Pakistan.
Popular imported cars such as Suzuki, Toyota Vitz, Daihatsu Mira, Toyota Prius, Honda Vezel, and Toyota Aqua may become more affordable.
In addition, the current 2% additional customs duty on car parts may be removed. There is also talk of reducing the 4% to 7% duty slabs gradually.
Other Industry Benefits
The government is also planning to cut duties on raw materials and semi-finished goods. This will benefit industries like textiles, chemicals, plastics, auto parts, iron, and steel.
To support revenue collection, the government aims to raise Rs 600 billion through better enforcement and another Rs 400 billion from new measures.
If these proposals are implemented, the upcoming budget could bring major financial relief for car buyers and businesses across multiple industries.