ISLAMABAD – Toyota Corolla buyers could face major price shock as the federal government considers imposing a new 6% Environmental Levy on conventional fuel-powered vehicles in Budget 2026-27.
If approved, the proposed tax could increase Corolla prices by Rs243,000 to Rs302,000, pushing some variants close to, and even beyond, Rs8 million mark. According to sources, Corolla Altis X Manual 1.6 could rise from Rs6.202 million to Rs6.445 million, an increase of Rs243,000. The Corolla Altis 1.6 X CVT-i may become Rs267,000 more expensive, taking its expected price to Rs7.069 million.
Corolla Altis X CVT-i 1.8 is projected to climb by Rs276,000 to Rs7.305 million, while Corolla Altis 1.6 X CVT-i Special Edition could see a Rs288,000 increase, lifting its price to around Rs7.627 million.
Expected Corolla Prices After Proposed 6%
| Variant | Current Price | Expected Price | Increase |
| Corolla Altis X Manual 1.6 | 6,202,000 | 6,445,000 | 243,000 |
| Corolla Altis 1.6 X CVT-i | 6,802,000 | 7,069,000 | 267,000 |
| Corolla Altis X CVT-i 1.8 | 7,029,000 | 7,305,000 | 276,000 |
| Corolla Altis 1.6 X CVT-i Special Edition | 7,339,000 | 7,627,000 | 288,000 |
| Corolla Altis Grande X CVT-i 1.8 Beige Interior | 7,669,000 | 7,970,000 | 301,000 |
| Corolla Altis Grande X CVT-i 1.8 Black Interior | 7,709,000 | 8,011,000 | 302,000 |
Corolla Altis Grande X CVT-i 1.8 Beige Interior could jump by Rs301,000 to Rs7.97 million, while the Black Interior version may become the costliest Corolla in the lineup at an estimated Rs8.011 million after a Rs302,000 increase.
The proposed Environmental Levy is part of a broader policy shift being considered by the government to encourage cleaner transportation and accelerate the adoption of electric vehicles (EVs). Alongside the levy, policymakers are evaluating tax and duty concessions for EVs, including possible exemptions from Federal Excise Duty (FED), Capital Value Tax (CVT), and withholding tax.
The proposals, which are subject to IMF approval, could significantly reshape Pakistan’s automobile market, making conventional vehicles more expensive while improving the affordability of electric alternatives.
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