{"id":102485,"date":"2025-06-11T13:33:09","date_gmt":"2025-06-11T08:33:09","guid":{"rendered":"https:\/\/www.zameen.com\/news\/?p=102485"},"modified":"2025-06-11T13:33:13","modified_gmt":"2025-06-11T08:33:13","slug":"govt-imposes-18-sales-tax-on-small-cars","status":"publish","type":"post","link":"https:\/\/www.zameen.com\/news\/govt-imposes-18-sales-tax-on-small-cars.html","title":{"rendered":"Govt Imposes 18% sales tax on small cars, hybrid vehicles"},"content":{"rendered":"\n<p>Islamabad: The federal government has proposed imposing a uniform 18% sales tax on small vehicles up to 850cc as part of its 2025-26 budget, marking a significant change in the country\u2019s auto taxation regime. Previously exempt or taxed at lower rates, petrol, diesel, and hybrid vehicles in this category will now be subject to the standard sales tax rate.<\/p>\n\n\n\n<p>Finance Minister Muhammad Aurangzeb, while unveiling the Rs17.573 trillion federal budget on Tuesday, said the step aims to bring parity in taxation across various vehicle types and curb distortions in the auto market.<\/p>\n\n\n\n<p>Additionally, the government announced a new carbon levy of Rs2.5 per litre on petrol, high-speed diesel, and furnace oil to discourage fossil fuel usage. The levy is expected to double to Rs5 per litre in FY2026-27, which may affect fuel prices and, indirectly, vehicle operating costs.<\/p>\n\n\n\n<p>Read: <a href=\"https:\/\/www.zameen.com\/news\/govt-ends-filer-vs-non-filer-distinction-in-budget.html\" target=\"_blank\" rel=\"noreferrer noopener\">Govt ends filer vs non-filer distinction in Budget 2025-26<\/a><\/p>\n\n\n\n<p>To promote local manufacturing, an 18% sales tax has also been levied on imported solar panels, which could impact electric vehicle (EV) infrastructure in the long run by making off-grid charging more expensive unless local production scales up.<\/p>\n\n\n\n<p>These tax measures are part of broader efforts to expand the tax net and boost revenues, but industry experts warn they may put further pressure on vehicle affordability for middle- and lower-income groups in Pakistan.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Islamabad: The federal government has proposed imposing a uniform 18% sales tax on small vehicles up to 850cc as part of its 2025-26 budget, marking a significant change in the country\u2019s auto taxation regime. Previously exempt or taxed at lower rates, petrol, diesel, and hybrid vehicles in this category will now be subject to the standard sales tax rate. Finance Minister Muhammad Aurangzeb, while unveiling the Rs17.573 trillion federal budget on Tuesday, said the step aims to bring parity in taxation across various vehicle types and curb distortions in the auto market. Additionally, the government announced a new carbon levy of Rs2.5 per litre on petrol, high-speed diesel, and furnace oil to discourage fossil fuel usage. The levy is expected to double to Rs5 per litre in FY2026-27, which may affect fuel prices and, indirectly, vehicle operating costs. Read: Govt ends filer vs non-filer distinction in Budget 2025-26 To promote local manufacturing, an 18% sales tax has also been levied on imported solar panels, which could impact electric vehicle (EV) infrastructure in the long run by making off-grid charging more expensive unless local production scales up. These tax measures are part of broader efforts to expand the tax net and&hellip;<\/p>\n","protected":false},"author":18,"featured_media":101749,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15015],"tags":[65203,65210,65201,65202,65208,65199,65211,65205,65206,63266,65200,65209,65204,60688,65207],"persona":[],"class_list":{"0":"post-102485","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-legal-taxation","8":"tag-18-sales-tax-cars","9":"tag-850cc-car-tax","10":"tag-auto-industry-taxes","11":"tag-auto-sales-tax","12":"tag-auto-sector-regulations","13":"tag-automobile-sector","14":"tag-budget-impact-cars","15":"tag-car-prices-pakistan","16":"tag-electric-vehicles-policy","17":"tag-federal-budget-2025-26","18":"tag-hybrid-vehicles-tax","19":"tag-import-taxes-vehicles","20":"tag-local-car-manufacturing","21":"tag-pakistan-auto-industry","22":"tag-vehicle-tax-reforms","23":"cat-15015-id"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Govt Imposes 18% sales tax on small cars - Zameen News<\/title>\n<meta name=\"description\" content=\"Additionally, the government announced a new carbon levy of Rs2.5 per litre on petrol, high-speed diesel, and furnace oil to discourage...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zameen.com\/news\/govt-imposes-18-sales-tax-on-small-cars.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Govt Imposes 18% sales tax on small cars - Zameen News\" \/>\n<meta property=\"og:description\" content=\"Additionally, the government announced a new carbon levy of Rs2.5 per litre on petrol, high-speed diesel, and furnace oil to discourage...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zameen.com\/news\/govt-imposes-18-sales-tax-on-small-cars.html\" \/>\n<meta property=\"og:site_name\" content=\"Pakistan Real Estate News &amp; 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