Prospective car buyers in Pakistan, beware — With the proposed 2% FED on cars above 1300cc, prices of Toyota’s Yaris and Corolla Altis may rise in the coming weeks.

Budget Impact: 2% Extra Duty

The Federal Budget 2025–26 has suggested a 2% Federal Excise Duty (FED) on cars ranging from 1300cc to 1800cc, which could directly affect the most popular Toyota models.

Estimated Price Hikes

If implemented:

Toyota Yaris 1.3 CVT (Current: PKR 4.39 million) → Expected: PKR 4.48 million

Corolla Altis 1.6 (Current: PKR 5.90 million) → Expected: PKR 6.02 million

Altis Grande 1.8 CVT may face a hike of PKR 120,000–150,000

Other Price Factors

Global increase in raw material costs

Fluctuating USD-PKR rates

Higher prices of imported CKD kits

What Buyers Should Do

Planning to buy a Toyota sedan?

Book your vehicle before the new tax is enforced to avoid higher prices post-budget.