Government Adds Hybrid Cars to Green Tax List

Jawad

25 Jun 2025

119

Government Adds Hybrid Cars to Green Tax List

When the Green tax budget 2025 was first presented, it was widely believed that only Internal Combustion Engine (ICE) vehicles would be affected by this new policy. However, after a deeper analysis, it has been confirmed that Hybrid Electric Vehicles (HEVs) are also subject to the hybrid vehicles green tax under the proposed structure.

This revelation marks a significant shift in the hybrid vehicle tax policy of Pakistan, as many expected hybrids to remain exempt. However, vehicles known as Plug-in Hybrid Electric Vehicles (PHEVs), which offer a minimum 50km electric-only range, will continue to be excluded from this regulation, provided they meet the criteria of traveling that distance solely on electric power.

Who Is Exempt Under the Green Tax Policy?

According to the latest definition by the government, vehicles excluded from the new tax on hybrid vehicles are those that fall into either of the following categories:

Vehicles powered only by an electric motor using a rechargeable battery.
PHEVs that combine an electric motor and fuel engine but can travel at least 50 km on electric power alone.

Any vehicles not meeting these standards—including standard HEVs—will be taxed under the new structure.

HEV Green Tax 2025: Tax Rates Breakdown

The HEV tax structure 2025 divides applicable vehicles into three categories based on engine capacity:

1% for vehicles with engines 1300cc or below
2% for engines 1301cc to 1800cc
3% for vehicles 1801cc and above

At present, all locally available HEVs in Pakistan fall in the 1300cc to 1800cc range and will therefore be subject to the 2% hybrid car tax Pakistan. This has caused concern among consumers who previously considered hybrids a more eco-friendly and tax-saving option.

Car Brands	Models	Engine	Ex-factory Price (Rs.)	2% Green Tax (Rs.)	Expected Price Increase (Rs.)
Haval	H6 HEV	1.5l	11,749,000	234,980	11,983,980
Haval	Jolion	1.5l	9,295,000	185,900	9,480,900
Toyota	Corolla Cross 1.8 HEV	1.8l	8,999,000	179,980	9,178,980
Toyota	Corolla Cross 1.8 HEV X	1.8l	9,449,000	188,980	9,637,980
Hyundai	Elantra Hybrid	1.6l	9,700,000	194,000	9,894,000
	Tucson Hybrid Smart	1.6l	10,999,000	219,980	11,218,980
	Tucson Hybrid Signature	1.6l	11,999,000	239,980	12,238,980
	Santa Fe Smart	1.6l	12,490,000	249,800	12,739,800
	Santa Fe Signature	1.6l	13,899,000	277,980	14,176,980
Kia	Sportage L HEV	1.6l	10,999,000	219,980	11,218,980
	KIA Sorento 1.6T HEV FWD	1.6l	14,699,000	293,980	14,992,980
	KIA Sorento 1.6T HEV AWD	1.6l	15,999,000	319,980	16,318,980

Why Are Hybrids Included in the Green Tax?

The government justifies this inclusion by highlighting that hybrid vehicles still rely on ICE technology, which emits pollutants. As a result, the government hybrid car tax aims to promote fully electric alternatives and reduce environmental harm. This step aligns with global trends in sustainable mobility, even if it adds to the cost of hybrid vehicle ownership in the country.

Impact on Buyers and the Auto Market

With the introduction of the HEV green tax 2025, buyers are urged to reassess their choices, especially those considering hybrid vehicles for their fuel efficiency. The tax is designed not only to generate revenue but to encourage a broader shift toward zero-emission vehicles.

This Pakistan green tax update marks a significant change in the automotive landscape. Consumers must now factor in this added cost when purchasing ICE or HEV models and consider long-term benefits of shifting to electric vehicles.

Hybrid vehicles green tax Green tax on hybrids HEV green tax 2025 Hybrid car tax Pakistan Green tax budget 2025 Hybrid vehicle tax policy Government hybrid car tax Pakistan green tax update HEV tax structure 2025 New tax on hybrid vehicles

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