Business Desk 
Jun 28, 2025
In the wake of tax hikes included in the recently announced federal budget 2025-26, car prices in Pakistan are expected to see a sharp uptick, including the most common models like the Honda City and Civic.
The introduction of the Climate Support Levy, which the government proclaims will encourage the adoption of cleaner and more eco-friendly vehicles and boost revenue, will be applied to the original price of vehicles, because of which buyers will have to bear additional costs.
New Climate Support Levy on car prices in Pakistan
- 1% tax on cars with up to 1300cc engines
- 2% tax on mid-size cars with 1301cc-1800cc engines
- 3% tax on bigger cars with engines above 1800cc
Given these considerable tariffs, car prices will rise by five digits, with bigger engine cars registering an estimated hike of six figures.
Honda City expected new prices
| Honda City model | New price | New tax |
| City 1.2L M/T | 4,695,490 | 46,490 |
| City 1.2L CVT | 4,735,890 | 46,890 |
| City 1.5L CVT | 5,547,780 | 108,780 |
| City 1.5L Aspire M/T | 5,761,980 | 112,980 |
| City 1.5L Aspire CVT | 5,965,980 | 116,980 |
Honda Civic expected new prices
| Honda Civic model | New price | New tax |
| Civic Oriel | 8,832,180 | 173,180 |
| Civic RS | 10,096,980 | 197,980 |
It's worth noting that the price increments will not be limited to Honda, meaning this new tax will also lead to a rise in prices of other popular models like the Toyota Corolla Cross and Kia Sportage Hybrid, along with various local hybrids.
