rewrite this title with different wordingBudget 2024-25 – Increased Custom Duties On Imported Used Hybrids

The budget for 2024-25 was announced two days ago. The new budget doesn’t seem automobile industry-friendly. With new taxes and the imposition of heavy WHT, the government has also reduced the customs duty exemptions from imported HEVs. Here we’re again with new and revised custom duties on popular imported HEV vehicles.

What is the Exemption Policy on Imported HEVs?

In 2013, the government announced a 50% exemption on all imported HEVs. For example, if a duty on a 1500cc car is $6,000, but on the HEV 1500cc car, you would have to pay only 50% of duty, i.e., $3,000.

After 11 years, in budget 2024-25, the government removed this exemption, and now customers will have to pay a 100% duty on imported HEVs without any concession or discount. 

Here’s the list of new custom duty charges on imported HEV vehicles in Pakistan, along with their old custom duties:

Toyota Aqua

Earlier, the Aqua 2021-24 model could be imported for 60-80 lacs PKR. The duty on the 1500cc engine is US$18,590 or 52 lacs PKR. Aqua, a 1500cc hybrid, had a duty of 26 lacs PKR earlier. Now, if you import this HEV, you’ll have to pay the full 52 lacs duty.

For instance, we’ll take the Toyota Aqua Z 2022 model (12,000 Km on odometer):

Toyota Prius

Previous, a 2011 model Prius S could be imported under 32-36 lacs PKR. It’s 1800cc car, so duty on a 1800cc car is 78 lacs PKR. Prius, being an HEV, only required you to pay 50% of the duty, i.e., 3.9 million PKR. Now, if the proped budget passes, you’ll have to pay full 100% of the duty.

For an idea, we’re taking the Toyota Prius G 2014 model (175,000 Km on odometer):

Honda Vezel

Honda Vezel is a popular car under the imported HEV crossovers. Earlier, the duty on the Vezel was 26 lacs PKR, 50% of the exemption, while the actual duty on the 1500cc car was 52 lacs PKR. Now, under the budget, if it gets passed, you’ll have to pay the full 52 lacs duty and the car will cost you round 86 lacs PKR.

For an idea, we’re taking the Honda Vezel RS 2018 model with 28,000 Km on the odometer:

Toyota C-HR

Toyota C-HR is another popular hybrid car in the Pakistani market. It’s basically a compact crossover with a hybrid drive and a 1500cc engine. It’s based on the platform of the 12th generation Corolla but with few add-ons and in a compact crossover format.

Toyota Sienta

Toyota Sienta is a hybrid MPV van mostly known for its long touring and intercity travel. It’s basically a class up from Toyota Aqua G in the MPV form.