The federal budget 2025–26 has brought an unwelcome surprise for hybrid vehicle buyers in Pakistan. A major increase in the General Sales Tax (GST) on hybrid vehicles is set to drive up prices, with the KIA Sportage L HEV among the most affected models.
Under the new tax policy, the GST on hybrid vehicles has surged from 8.5% to a flat 18%, aligning it with the standard rate now applied across petrol, diesel, and hybrid variants. This move eliminates the earlier tax concession aimed at promoting environmentally friendly transportation options in Pakistan.
New Price of KIA Sportage L HEV After Tax Hike
According to reports, the price of the KIA Sportage L HEV is expected to increase sharply. Currently priced at Rs 10,999,000, the SUV will now cost approximately Rs 11,962,046—an increase of Rs 963,046. This substantial hike could hinder the growing interest in hybrid vehicles and make them less accessible to middle-income buyers.
The KIA Sportage L HEV (5th Generation) has been a standout in Pakistan’s SUV market due to its cutting-edge design, advanced technology, and eco-friendly performance. Featuring a distinctive “Star Map” front grille, modern LED lighting, and refined chrome accents, the vehicle offers a stylish and aerodynamic profile.
Inside, the Sportage L boasts a 12.3-inch curved infotainment display, wireless charging, ambient lighting, and heated seats and steering for added comfort. The premium interior, paired with intuitive tech, enhances the overall driving experience.
Under the hood, buyers can choose between a fuel-efficient 2.0L MPI petrol engine or the highly economical 1.6L turbocharged hybrid powertrain. The hybrid variant is particularly favored for its superior fuel economy and reduced emissions.
Additionally, the Sportage L HEV is equipped with Advanced Driver Assistance Systems (ADAS), a panoramic sunroof, and luxurious upholstery—making it a top choice among compact SUV enthusiasts.
However, the steep post-budget price hike may challenge its competitiveness in the Pakistani market. As affordability becomes a concern, the automotive industry will closely watch how consumers respond to the new pricing landscape for hybrid vehicles.