The Toyota Yaris could see a substantial price reduction under Pakistan’s proposed Automotive and Auto Parts Policy 2026–31, which outlines changes to customs duties and taxes for conventional and new energy vehicles.
Prime Minister Shehbaz Sharif approved the policy’s final draft on Tuesday. The government will submit it to the International Monetary Fund (IMF) for approval before seeking federal cabinet approval and introducing the necessary bill in parliament.
The draft divides new energy vehicles into three categories: Range Extended Electric Vehicles (REEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Battery Electric Vehicles (BEVs). It proposes sales tax rates of 6% for REEVs, 9% for PHEVs, and 1% for BEVs, subject to IMF approval.
Hybrid electric vehicles and conventional vehicles will be treated equally in terms of duties and taxes. For conventional ICE cars and SUVs, the proposed customs duty will be 15% in 2031, without additional or regulatory duty.
According to estimates published by The Express Tribune, the 1,496cc Toyota Yaris, priced at Rs. 6 million, could fall to Rs. 5.3 million in the first year, a potential reduction of Rs. 700,000.
This is an estimated price impact, not an official announcement. The policy still requires IMF and federal cabinet approval.
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