New MG Hybrid Prices in Pakistan, Sales Tax Raised to 25%
MG Hybrid buyers in Pakistan are facing new price hikes as the government has allowed the 8.5% sales tax rebate to end and hybrid vehicles are now subject to the standard 25% rate.
The British auto company is not giving customers the full effect at once with a phased approach, with the amount buyers pay depending on when they book and how much they’ve already paid. MG has revealed how it plans to deal with Pakistan’s massive hybrid sales tax shock, and some buyers are getting a much better deal than others.
The company joined a growing wave of automakers responding to Pakistan’s sudden hike in sales tax on hybrid vehicles, but the company took an unusual route. Instead of passing the entire burden of the tax onto consumers immediately, MG is phasing in the impact, with the company absorbing up to 100% of the additional tax for some buyers.
The latest adjustment has nothing to do with MG increasing the base prices of its vehicles, but the end of the special tax treatment already in place for hybrid vehicles. As of June 30, 2026, hybrids had a reduced sales tax rate of 8.5 percent. After the exemption ended without an extension from the government, hybrid vehicles automatically reverted to the standard 25% sales tax rate.
This represents a substantial increase in the tax burden and has forced manufacturers across the industry to revise their hybrid pricing.
Current listed Prices (Under previous ~8.5% sale Tax discount)
|
Variant
|
Type
|
Former factory Price
|
|---|---|---|
|
MG H.S Hybrid+
|
HEV (self charging)
|
PKR 9,499,000
|
|
MG H.S Super Hybrid
|
PHEV (Plugin)
|
PKR 10,199,000
|
Toyota, Honda, Suzuki, Hyundai and Chery have all been affected, with manufacturers adopting different strategies to deal with the additional costs. Some have passed the full impact on to consumers, while others are absorbing their share, usually between 20% and 50%.
Estimated new prices inclusive of 25% sales tax (if fully approved)8.5% sales tax reduction on hybrid vehicles (HEVs/PHEVs up to 1800cc) expired 30 June 2026. The standard rate is now 25%.
|
variable
|
Old Price (8.5% Tax)
|
New price (25% tax)
|
An increase of approx
|
|---|---|---|---|
|
MG HS Hybrid+
|
PKR 9,499,000
|
10,944,000
|
+ 1,445,000
|
|
MGHS Super Hybrid
|
PKR 10,199,000
|
11,750,000
|
+ 1,551,000
|
However, MG has taken a more sophisticated but potentially more customer-friendly approach.
Customers who booked HS Hybrid+ or SuperHybrid and completed their full payment by July 31, 2026, are in the strongest position. MG will absorb 100% of the impact of the additional tax, meaning these buyers will not have to bear any increase arising from the change in sales tax.
Customers who booked within the same period but paid only partially will not receive the same level of protection. Instead the excess load will be split equally, with MG covering 50% and the consumer paying the remaining 50%.
For customers who booked and paid during August, MG has slightly reduced its share. Those who paid in full between August 1 and August 31 will see MG absorb 75% of the additional tax, leaving consumers responsible for the remaining 25%. Buyers who only partially paid during August will face a 50-50 split again.
MGHS PHEV Owners Can Save Rs 8 Lakhs in Pakistan, Here’s How!
The post New prices of MG hybrid in Pakistan, sales tax has reached 25 percent appeared first on Daily Pakistan English News.
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