ISLAMABAD – Suzuki Alto, one of cheapest cars in Pakistan, gets more expensive as the government imposes New Levy and proposed elevated Sales Tax on all autos in Budget 2025.
In federal budget fiscal year 2025–26, the Government of Pakistan increased the General Sales Tax (GST) on automobiles from 12.5% to 18% and introduced an additional 1% levy on all car sales. The move, aimed at boosting government revenues, has resulted in a significant increase in the prices of popular vehicles — including the widely purchased Suzuki Alto variants.
Suzuki Alto Expected Price in Pakistan 2025
| Variant | Old Price (12.5% GST) | New Price (18% GST) | Expected Price |
|---|---|---|---|
| Alto VXR | 2,827,000 | 2,965,209 | 2,993,861 |
| Alto VXR AGS | 2,989,000 | 3,135,129 | 3,166,018 |
| Alto VXL AGS | 3,140,000 | 3,293,511 | 3,324,446 |
Consumer and auto dealers have expressed concern over the increasing cost of ownership, especially at a time when inflation and fuel prices are already putting pressure on household budgets. “It’s getting harder for the average person to afford even a small car,” said one local car dealer in Lahore.
Finance Ministry officials stated that the increase in GST and the introduction of the 1% levy are necessary steps to stabilize the economy and meet tax collection targets for FY 2025–26. The measures are part of broader fiscal reforms tied to IMF recommendations.
These changes aim to promote eco-friendly transport but also increase costs for conventional vehicle users. As a result, prices of hybrid electric vehicles (HEVs) in Pakistan are expected to rise significantly, with increases up to over 1.4 million.
New expected prices of Suzuki Alto VXR, VXL and AGS in Pakistan from July 2025
