The Toyota Yaris could become cheaper in Pakistan under the proposed Automotive and Auto Parts Policy 2026–31. The draft policy outlines changes to customs duties and taxes for conventional and new energy vehicles.
According to estimates published by The Express Tribune, the 1,496cc Toyota Yaris currently priced at Rs. 6 million could cost around Rs. 5.3 million. This would mean a potential price reduction of Rs. 700,000 during the policy’s first year.
However, this estimated reduction is not an official announcement from Toyota Pakistan. The proposed policy still requires approval before the government can implement the changes.
Prime Minister Shehbaz Sharif approved the policy’s final draft on Tuesday. The government will submit it to the International Monetary Fund (IMF) for approval. It will then seek federal cabinet approval before introducing the required bill in parliament.
New Auto Policy Proposes Changes to Vehicle Taxes
The proposed Automotive and Auto Parts Policy 2026–31 aims to revise taxes on conventional vehicles and new energy vehicles. These changes could affect vehicle prices across different categories.
The draft divides new energy vehicles into three groups. These include Range Extended Electric Vehicles (REEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Battery Electric Vehicles (BEVs).
Under the proposal, REEVs would face a sales tax rate of 6%. PHEVs would have a proposed rate of 9%, while BEVs would be subject to a rate of 1%.
These proposed tax rates remain subject to IMF approval. The government has not yet implemented the changes.
Conventional Cars Could Also Become Cheaper
The draft policy also proposes changes to customs duties on conventional internal combustion engine (ICE) cars and SUVs. It aims to reduce customs duty to 15% by 2031.
The proposed rate would apply without additional or regulatory duties. If approved, these measures could reduce certain costs associated with vehicle imports.
The policy also proposes equal treatment for hybrid electric vehicles and conventional vehicles regarding duties and taxes. This could affect pricing across several vehicle categories.
Toyota Yaris Price Reduction Remains Unconfirmed
The estimated Toyota Yaris price reduction could offer potential savings to car buyers. A decrease from Rs. 6 million to Rs. 5.3 million would represent a reduction of approximately 11.7%.
However, buyers should treat these figures as estimates rather than confirmed prices. The final cost will depend on policy approval, implementation, and the manufacturer’s pricing decisions.
The proposal still requires IMF and federal cabinet approval. Parliament must also consider the necessary legislation before the proposed measures can take effect.
In other related news also read Toyota Yaris Price In Pakistan
Toyota Pakistan has not officially confirmed the projected price reduction. Prospective buyers should wait for an official announcement before making purchasing decisions based on the proposed policy.
