Business Desk 
Jun 15, 2025
As the federal budget 2025-26 Pakistan is announced, automobile industry as seen a proposed 2% tax hike on vehicles with engine capacities between 1300cc and 1800cc. This change is likely to hike the prices of several popular Honda car models.
If officially applied, the new taxes would result in higher ex-factory prices for Honda sedans, crossovers, and multi-purpose vehicles.
These changes directly affect the affordability of cars, such as the Honda Civic, City, BR-V, and HR-V, which are among the most sought-after models in Pakistan.
Honda cars price increases after 2% tax (expected)
| Model and Variant | Current Price (Rs) | Expected Price (Rs) |
| 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 |
To note, the Honda Civic Oriel is teased to see an increase of over Rs173,000, while the high-performance Civic RS could become nearly Rs200,000 more expensive.
This potential tax adjustment comes on top of existing challenges in the auto sector, including inflation, currency devaluation, and high interest rates after the budget 2025-26 Pakistan.
It is worth noting that all vehicle price estimates in this article are based on proposed tax policies and are subject to change following the final budget approval.
