ISLAMABAD (PEN) : The federal government has introduced a green tax on eco-friendly vehicles as part of the newly approved fiscal budget, resulting in noticeable price hikes in the automotive market.
Price Impact on Hybrid Vehicles
Following the tax implementation, prices of hybrid vehicles have increased by 3 to 5 percent, according to industry insiders. The Car Dealers Association has estimated that the added tax burden could raise the cost of a single hybrid vehicle by up to Rs500,000.
Despite growing environmental concerns, showroom activity remains subdued, with dealers reporting limited consumer interest amid rising prices.
Industry Response and Concerns
Rana Kaleem, spokesperson for the Car Dealers Association, expressed concerns over the move, emphasizing the importance of promoting eco-friendly transportation for a sustainable future. He stated, “The promotion of environmentally friendly vehicles is essential for a sustainable future. Policies should encourage rather than hinder such efforts.”
Industry experts warn that imposing new taxes on green vehicles contradicts the government’s stated commitment to green transport solutions and may slow down the adoption of environmentally friendly cars, thereby negatively affecting sales.
The decision has sparked calls from car dealers for the government to reconsider and immediately reverse the green tax to support the struggling auto sector and encourage the growth of eco-friendly vehicle use in Pakistan.
