Land Cruiser Becomes More Expensive Under New Tax

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Sameer

Land Cruiser Becomes More Expensive Under New Tax

The iconic Land Cruiser remains one of the most sought-after luxury SUVs in Pakistan, favored by business leaders, government officials, and automobile enthusiasts. However, owning a Land Cruiser could soon become significantly more expensive if the proposed Budget 2026-27 tax measures are approved.

The federal government has proposed several changes to import duties on vehicles. While some of these revisions appear to reduce the tax burden, a newly introduced levy could ultimately increase the overall cost of importing high-end SUVs, including the Land Cruiser LC300 ZX.

Under the proposed budget, Regulatory Duty (RD) on imported vehicles would be reduced from 50 percent to 20 percent. Similarly, Additional Customs Duty (ACD) is expected to decrease from 6 percent to 4 percent. These reductions initially suggest lower import costs and easier vehicle clearances for importers.

However, the government has also proposed a 41 percent Special Excise Duty (SED) on imported vehicles. This new tax is expected to outweigh the benefits of the duty reductions and substantially increase the final cost of imported SUVs.

According to market estimates, total taxes and duties on a 2023 Land Cruiser LC300 ZX could rise from approximately Rs33 million to nearly Rs38 million. This would result in an additional tax burden of around Rs5 million for buyers.

The Land Cruiser is widely recognized for its premium design, luxury features, advanced safety systems, and exceptional off-road performance. It remains one of the most prestigious SUVs available in Pakistan’s automotive market.

The LC300 ZX is powered by a 3.5-liter twin-turbocharged V6 petrol engine that generates 409 horsepower and 650 Nm of torque. It is paired with a 10-speed automatic transmission and Toyota’s advanced four-wheel-drive system, offering impressive performance on both highways and challenging terrains.

Currently, the Land Cruiser LC300 ZX is priced between Rs90 million and Rs95 million in Pakistan, while imported models can cost anywhere from Rs60 million to over Rs90 million depending on their condition, model year, and specifications. If the proposed budget measures are implemented, prospective buyers may have to pay considerably more to own this luxury SUV.

Also Read: Haval Unveils Toyota Land Cruiser Competitor.

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