ISLAMABAD – Amid rumors of an increase in car prices after the fiscal budget 2025-26, the expected increase in prices includes Honda, which is expected to move up by half a million. The government has announced the new Climate Support Levy to be added to the original amount, adding a burden on consumers on top of the already heavy prices, as the government is exploring all possible options to increase revenue.
According to a private news outlet, the tax on smaller engines going up to 1300cc will be placed at 1%, as for the tax on mid-size cars with engines from 1301cc to 1800cc will be placed at 2% for mid-size engines (1301cc to 1800cc), and 3% for engines above 1800cc. As per the government, the aim of this tax is to reduce pollution and promote the use of cleaner vehicles.
City 1.2L M/T, currently priced at 4,649,000, will be increased by 46,490, and the new price will be 4,695,490. City 1.2L CVT new price will be 4,735,890. City 1.5L CVT, which costs 5,547,780, will cost 5,439,000 after Rs108,780. Honda City 1.5L Aspire M/T price will be increased from 5,649,000 by 112,980, making its new price 5,761,980. City 1.5L Aspire CVT price will increase by 116,980 from its original price of 5,849,000. The new price will be approximately 5,965,980.
| Models | Old Price | New Tax | New Price |
|---|---|---|---|
| City 1.2L M/T | 4,649,000 | 46,490 | 4,695,490 |
| City 1.2L CVT | 4,689,000 | 46,890 | 4,735,890 |
| City 1.5L CVT | 5,439,000 | 108,780 | 5,547,780 |
| City 1.5L ASPIRE M/T | 5,649,000 | 112,980 | 5,761,980 |
| City 1.5L ASPIRE CVT | 5,849,000 | 116,980 | 5,965,980 |
Honda Civic new prices after Tax:
| Models | Old Price | Taxes | New Price |
|---|---|---|---|
| Civic Oriel | 8,659,000 | 173,180 | 8,832,180 |
| Civic RS | 9,899,000 | 197,980 | 10,096,980 |
Moving on to the Civic models, the Civic Oriel price will be increased to while Civic RS, originally priced at 9,899,000, will cost 10,096,980 after the addition of 197,980.
Regular hybrids like the Toyota Corolla Cross or Kia Sportage Hybrid will also become expensive after new changes. As a result, most locally made cars will become more expensive. How much the prices go up will depend on the car’s model and engine size.
