In the budget for 2024–2025, the government eliminated tax advantages for imported hybrid cars. These vehicles will now be taxed similarly to other vehicles based on the price and size of their engines. This move would probably result in higher hybrid car pricing in Pakistan, which will make them more challenging to sell. 

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According to official budget 2025 records, this decision is based on the local production of hybrid cars. The tax break for imported hybrid cars is no longer required because these vehicles are now produced locally, and the difference in price between ordinary and hybrid vehicles has shrunk. 

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According to official budget records, this decision is based on the local production of hybrid cars. The tax break for imported hybrid vehicles is no longer required because these vehicles are now produced locally, and the difference in cost between ordinary and hybrid vehicles has shrunk. 

The cost of imported hybrid cars has also increased due to an increase in the withholding tax on ordinary autos. Cars with engines ranging from less than 800 cc to more than 2000 cc are impacted by this tax increase.