Pakistan's proposed Automotive and Auto Parts Policy 2026-31 could bring a major price decrease for the Toyota Yaris by adjusting customs duties and taxes for both standard and new energy vehicles.
Prime Minister Shehbaz Sharif signed off on the final draft of the policy on Tuesday. Authorities plan to present the document to the International Monetary Fund for review before asking the federal cabinet for formal approval and presenting a bill to parliament.
Under the draft, new energy vehicles fall into three distinct groups consisting of Range Extended Electric Vehicles, Plug-in Hybrid Electric Vehicles, and Battery Electric Vehicles. The plan suggests sales tax figures of 6% for Range Extended Electric Vehicles, 9% for Plug-in Hybrid Electric Vehicles, and 1% for Battery Electric Vehicles, pending International Monetary Fund agreement.
Standard cars and hybrid electric vehicles will share the same duty and tax treatment. For standard internal combustion engine automobiles and sports utility vehicles, the suggested customs duty sits at 15% by the year 2031, without any regulatory or additional duties.
Calculations shared by The Express Tribune show that the 1,496cc Toyota Yaris, which currently costs Rs. 6 million, might drop to Rs. 5.3 million during the initial year, marking a possible decrease of Rs. 700,000.
This calculation represents a projected price shift rather than an official declaration, as the framework still awaits clearance from the International Monetary Fund and the federal cabinet.
