ISLAMABAD – Some relief for small car owners as the government plans no tax hike on Alto and other 850cc cars in Budget 2025.
Pakistani government officially stepped back from the proposal to increase sales tax on entry-level and hybrid vehicles, in light of strong opposition from the Senate Standing Committee on Finance and Revenue.
The initial proposal pushed for surge in General Sales Tax (GST) on Alto and other models as PML-N led coalition government aimed to raise the sales tax on hybrid vehicles up to 1800cc from the current 12.5% to 18%.
During NA session, Senator Saleem Mandviwalla said flat 18pc sales tax on Rs30lac car is not justifiable as he pushed authorities to take it back. Other senators further backed his stance, suggesting more moderate tax rate of 14% or 15%.
After latest backlash and strong opposition from Senate, Finance Ministry said current 12.5% GST on hybrid vehicles will remain unchanged.
Alto Price Update in Pakistan
In Budget 2025–26, the government proposed GST on vehicles from 12.5pc to 18pc and introduced an additional 1pc levy on all car sales. As a result, prices of budget-friendly cars like the Suzuki Alto was supposed to be increased .
Earlier it was reported that Alto VXR’s price will be increased from Rs2.83 million to nearly Rs3 million. Consumers and dealers are concerned about affordability amid inflation and high fuel costs. Finance Ministry says these tax hikes are part of broader economic reforms and are necessary to meet revenue goals under IMF recommendations.
New Price for Suzuki Alto in Pakistan after big increase; Check Full Prices here
