By In a significant development for Pakistan’s auto industry, the federal government’s proposed 2025–26 budget includes a 2% tax hike on vehicles with engine capacities between 1300cc and 1800cc. This change is expected to increase the prices of several popular Honda car models, affecting both existing buyers and potential customers in this engine category.
The new tax, if officially implemented, would result in higher ex-factory prices for Honda sedans, crossovers, and multi-purpose vehicles. These changes directly impact the affordability of cars like the Honda Civic, City, BR-V, and HR-V, which are among the most sought-after models in Pakistan’s mid-sized vehicle market.
Expected Honda Price Hikes After 2% Tax Implementation
| Model and Variant | Current Price (PKR) | Expected Price (PKR) |
|---|---|---|
| Honda Civic Oriel | 8,659,000 | 8,832,180 |
| Honda Civic RS | 9,899,000 | 10,096,980 |
| Honda City 1.5L CVT | 5,439,000 | 5,547,780 |
| Honda City 1.5L Aspire M/T | 5,649,000 | 5,761,980 |
| Honda City 1.5L Aspire CVT | 5,849,000 | 5,965,980 |
| Honda BR-V i-VTEC S | 6,299,000 | 6,424,980 |
| Honda HR-V VTi | 7,649,000 | 7,801,980 |
| Honda HR-V VTi-S | 7,899,000 | 8,056,980 |
Impact on Consumers
For instance, the Honda Civic Oriel is expected to see an increase of over PKR 173,000, while the high-performance Civic RS could become nearly PKR 200,000 more expensive. Even budget-conscious models like the Honda City CVT will face notable price bumps, potentially putting pressure on middle-class buyers.
Broader Market Implications
This potential tax adjustment comes on top of existing challenges in the auto sector, including inflation, currency devaluation, and high interest rates. The move may slow down vehicle sales in the 1300cc–1800cc category, as consumers reevaluate affordability.
Car buyers are advised to keep a close eye on official budget announcements and consider finalizing purchases ahead of any confirmed price revisions.
Disclaimer:
All vehicle price estimates in this article are based on proposed tax policies and are subject to change following the final budget approval. For the most accurate and updated prices, please consult authorized Honda dealerships or government sources.
