by 🚗 What Changed in the Budget?
1. Green Tax on Internal Combustion Engine (ICE) Vehicles
A new green levy of 1–3% has been introduced on ICE cars based on engine size—1% for <1300 cc, 2% for 1300–1800 cc, and 3% for >1800 cc models.
2. Sales Tax (GST) Increase for Small Cars
The GST on sub‑850 cc vehicles has risen from 12.5% to 18%, affecting entry-level models .
3. Withholding Tax Shift & Value‑Based WHT
Taxation is moving from engine-based slabs to value-based WHT—meaning more expensive vehicles will see higher pre-collection rates .
📈 How Much More Will You Pay?
A summary of the revised prices for key Honda models:
| Model / Variant | Old Price (₨) | New Price (₨) | Increase (₨) |
|---|---|---|---|
| Honda Civic Oriel | 8,659,000 | ≈ 8,832,180 | ~173,180 |
| Honda Civic RS | 9,899,000 | ≈ 10,096,980 | ~197,980 |
| Honda City 1.5L CVT | 5,439,000 | ≈ 5,547,780 | ~108,780 |
| Honda City Aspire M/T | 5,649,000 | ≈ 5,761,980 | ~112,980 |
| Honda City Aspire CVT | 5,849,000 | ≈ 5,965,980 | ~116,980 |
| Honda BR-V i‑VTEC S | 6,299,000 | ≈ 6,424,980 | ~125,980 |
| Honda HR-V VTi | 7,649,000 | ≈ 7,801,980 | ~152,980 |
| Honda HR-V VTi-S | 7,899,000 | ≈ 8,056,980 | ~157,980 |
These adjustments reflect the combined effect of the 2% green tax (applicable to mid-range engines like the Civic and City) plus any new GST or WHT components.
⚠️ Why This Matters
- Buyers: Those on the fence about purchasing a Honda may want to act soon—prices have escalated by ₨100k to ₨200k in just this round.
- Affordable Models Hit Hard: The City line, a staple for middle-income families, saw increases around ₨110k–₨117k.
- Premium Models More Affected: Higher-end models like the Civic RS and HR-V variants have seen steeper jumps, nearing ₨200k.
- Possibility of Further Rise: Additional budgetary levies (e.g., carbon levy & value-based WHT) may push prices even higher by fiscal year-end.
🔍 Broader Market Impacts
- Entry-level car sales may slow as overall affordability hits a new low. Suzuki Alto and similar budget cars are already pricing out lower-middle-class buyers.
- Automakers like Honda Atlas must manage pricing, margins, and potential reduction in sales volume.
- Shift Toward EVs: Higher ICE prices may shift consumers toward electric vehicles, aligning with the government’s green mobility agenda.
💡 Tips for Prospective Buyers
- Act Fast: If you’ve been considering a Honda purchase, expedite your decision before next tax hikes.
- Look Into Installments: Flexible financing may mitigate the impact of lump-sum payment increases.
- Ask Dealers: Clarify if dealers will absorb any tax burden or pass it fully onto buyers.
- Explore Incentives: Keep an eye on possible EV perks or special offers from Honda.
🧭 Final Word
The 2025–26 budget marks a turning point for the automotive industry in Pakistan. Honda buyers are now facing a tangible price increase—each model’s cost rising by ₨110k–₨200k depending on variant and tax slab. As the market braces for further fiscal measures, the landscape favors early action, smarter financing, and perhaps—even an EV educational moment.🚗 What Changed in the Budget?
1. Green Tax on Internal Combustion Engine (ICE) Vehicles
A new green levy of 1–3% has been introduced on ICE cars based on engine size—1% for <1300 cc, 2% for 1300–1800 cc, and 3% for >1800 cc models.
2. Sales Tax (GST) Increase for Small Cars
The GST on sub‑850 cc vehicles has risen from 12.5% to 18%, affecting entry-level models .
3. Withholding Tax Shift & Value‑Based WHT
Taxation is moving from engine-based slabs to value-based WHT—meaning more expensive vehicles will see higher pre-collection rates .
📈 How Much More Will You Pay?
A summary of the revised prices for key Honda models:
| Model / Variant | Old Price (₨) | New Price (₨) | Increase (₨) |
|---|---|---|---|
| Honda Civic Oriel | 8,659,000 | ≈ 8,832,180 | ~173,180 tribune.com.pk+7pakobserver.net+7gari.pk+7gari.pk |
| Honda Civic RS | 9,899,000 | ≈ 10,096,980 | ~197,980 |
| Honda City 1.5L CVT | 5,439,000 | ≈ 5,547,780 | ~108,780 |
| Honda City Aspire M/T | 5,649,000 | ≈ 5,761,980 | ~112,980 |
| Honda City Aspire CVT | 5,849,000 | ≈ 5,965,980 | ~116,980 |
| Honda BR-V i‑VTEC S | 6,299,000 | ≈ 6,424,980 | ~125,980 |
| Honda HR-V VTi | 7,649,000 | ≈ 7,801,980 | ~152,980 |
| Honda HR-V VTi-S | 7,899,000 | ≈ 8,056,980 | ~157,980 |
These adjustments reflect the combined effect of the 2% green tax (applicable to mid-range engines like the Civic and City) plus any new GST or WHT components.
⚠️ Why This Matters
- Buyers: Those on the fence about purchasing a Honda may want to act soon—prices have escalated by ₨100k to ₨200k in just this round.
- Affordable Models Hit Hard: The City line, a staple for middle-income families, saw increases around ₨110k–₨117k.
- Premium Models More Affected: Higher-end models like the Civic RS and HR-V variants have seen steeper jumps, nearing ₨200k.
- Possibility of Further Rise: Additional budgetary levies (e.g., carbon levy & value-based WHT) may push prices even higher by fiscal year-end.
🔍 Broader Market Impacts
- Entry-level car sales may slow as overall affordability hits a new low. Suzuki Alto and similar budget cars are already pricing out lower-middle-class buyers.
- Automakers like Honda Atlas must manage pricing, margins, and potential reduction in sales volume.
- Shift Toward EVs: Higher ICE prices may shift consumers toward electric vehicles, aligning with the government’s green mobility agenda.
💡 Tips for Prospective Buyers
- Act Fast: If you’ve been considering a Honda purchase, expedite your decision before next tax hikes.
- Look Into Installments: Flexible financing may mitigate the impact of lump-sum payment increases.
- Ask Dealers: Clarify if dealers will absorb any tax burden or pass it fully onto buyers.
- Explore Incentives: Keep an eye on possible EV perks or special offers from Honda.
🧭 Final Word
The 2025–26 budget marks a turning point for the automotive industry in Pakistan. Honda buyers are now facing a tangible price increase—each model’s cost rising by ₨110k–₨200k depending on variant and tax slab. As the market braces for further fiscal measures, the landscape favors early action, smarter financing, and perhaps—even an EV educational moment.
