
Pakistani car buyers are bracing for higher prices as the federal government has officially approved an increase in the General Sales Tax (GST) on cars with engine capacities up to 850cc, raising the rate from 12.5% to 18%. This tax hike directly affects some of Pakistan’s most popular entry-level vehicles, particularly the Suzuki Alto and Suzuki Every, which dominate the small car segment.
In addition to the GST hike, the government has also introduced a new Climate Support Levy (CSL), a tax ranging from 1% to 3% depending on engine size. In the case of the Alto and Every, a 1% CSL will apply. This levy aims to reduce pollution from internal combustion engines (ICE) and promote a gradual shift towards greener options like hybrid and electric vehicles (EVs).
The new taxes could push car prices up significantly. For Suzuki Alto buyers, the combined impact of the higher GST and the new CSL could result in an estimated price increase of Rs. 167,861 to Rs. 186,446, depending on the variant. For the Suzuki Every, the estimated hike ranges from Rs. 163,230 to Rs. 166,198.
Below is a breakdown of the expected new prices for popular variants:
Car Brand | Model | Previous Price (12.5% GST) | Price After 18% GST | 1% CSL | Total Expected Price |
---|---|---|---|---|---|
Suzuki | Alto VXR Upgraded | Rs. 2,827,000 | Rs. 2,965,209 | Rs. 29,652 | Rs. 2,994,861 |
Suzuki | Alto VXR AGS Upgraded | Rs. 2,989,000 | Rs. 3,135,129 | Rs. 31,351 | Rs. 3,166,480 |
Suzuki | Alto VXL AGS Upgraded | Rs. 3,140,000 | Rs. 3,293,511 | Rs. 32,935 | Rs. 3,326,446 |
Suzuki | Every VX | Rs. 2,749,000 | Rs. 2,883,396 | Rs. 28,834 | Rs. 2,912,230 |
Suzuki | Every VXR | Rs. 2,799,000 | Rs. 2,935,840 | Rs. 29,358 | Rs. 2,965,198 |
It’s important to note that these figures are estimates. There is a possibility that Suzuki Pakistan may absorb part of the additional tax burden to maintain affordability and sales momentum. Final prices will depend on the company’s pricing strategy.
Adding to the burden, the government has also imposed a new carbon tax of Rs. 2.5 per liter on fuel. This tax is specifically aimed at vehicles powered by traditional engines, further encouraging the transition to hybrid and fully electric vehicles.
The new CSL applies on top of all other taxes and is calculated as a percentage of the vehicle’s total price, including GST and duties. The rates are as follows:
This tax is part of Pakistan’s broader efforts to curb carbon emissions, aligning with international environmental commitments to reduce greenhouse gases and encourage eco-friendly transportation.
While these measures aim to promote sustainability, they will directly impact the cost of ownership for small car buyers—especially those considering popular models like the Suzuki Alto and Every. For consumers, staying informed about these price changes and understanding the new tax structure will be crucial when planning their next vehicle purchase.
Disclaimer:
The price estimates and tax calculations provided in this article are based on publicly available information and government notifications at the time of writing. Final vehicle prices may vary, as automotive companies like Suzuki Pakistan may choose to absorb part of the tax increase or adjust pricing based on market conditions. This content is for general information only and should not be taken as official pricing or financial advice. Always check with authorized dealers or official company sources for the most accurate and up-to-date prices before making any purchase decisions.
Afsheen Gohar is a seasoned writer with a wealth of experience in crafting authentic and well-researched articles. Her dedication to delivering high-quality content is evident in her work, where she combines a passion for storytelling with a commitment to accuracy and depth. Afsheen’s writing reflects her ability to engage readers with compelling narratives while providing valuable insights on a diverse range of topics.
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