The federal government is continuously imposing taxes. For example, the car buyers in Pakistan should prepare for higher prices on budget-friendly vehicles like the Suzuki Alto and the Suzuki Every, following recent tax changes introduced by the federal government.
These hikes result from an increase in General Sales Tax (GST) and the introduction of a new Climate Support Levy (CSL) aimed at promoting eco-friendly transport.
The government has raised GST on vehicles with engine sizes up to 850 cc from 12.5% to 18%. This directly affects popular models such as the Suzuki Alto and Suzuki Every, which are among the most commonly purchased locally assembled vehicles in this category.
New Climate Support Levy Introduced
Alongside the GST hike, the government has enforced a 1% Climate Support Levy on these models. The CSL is part of the Shehbaz Sharif-led government’s strategy to reduce emissions from internal combustion engine (ICE) vehicles and encourage the transition to electric vehicles (EVs). This tax is calculated on the vehicle’s total price after all existing duties and taxes.
- Vehicles under 1300cc: 1% CSL
- Vehicles between 1800 cc: 2% CSL
- Vehicles over 1800 cc: 3% CSL
Impact on Prices: Up to Rs. 186,446 Increase
The combined effect of GST and CSL could raise the price of the Suzuki Alto by Rs. 167,861 to Rs. 186,446, and the Suzuki Every by Rs. 163,230 to Rs. 166,198, depending on the variant. Below is the expected pricing:
| Model | Previous Price (12.5% GST) | Price After 18% GST | 1% CSL | Total Expected Price |
| Alto VXR Upgraded | Rs. 2,827,000 | Rs. 2,965,209 | Rs. 29,652 | Rs. 2,994,861 |
| Alto VXR AGS Upgraded | Rs. 2,989,000 | Rs. 3,135,129 | Rs. 31,351 | Rs. 3,166,480 |
| Alto VXL AGS Upgraded | Rs. 3,140,000 | Rs. 3,293,511 | Rs. 32,935 | Rs. 3,326,446 |
| Every VX | Rs. 2,749,000 | Rs. 2,883,396 | Rs. 28,834 | Rs. 2,912,230 |
| Every VXR | Rs. 2,799,000 | Rs. 2,935,840 | Rs. 29,358 | Rs. 2,965,198 |
While these estimates give a clear picture of potential costs, the final pricing will depend on Suzuki’s internal decision on whether to absorb some of the tax burden or pass it fully on to the buyer.
With fuel prices already high, these tax hikes may impact middle-income buyers who rely on small cars like the Alto and Every. However, the government maintains that this policy is necessary to push the market toward greener transportation alternatives.
