The government has imposed a green tax on eco-friendly vehicles under the new fiscal budget, resulting in significant price hikes across the market.
According to details surfaced on Thursday, car dealers have called for an immediate reversal of the decision, warning of its potential impact on an already struggling auto industry.
Prices of hybrid vehicles have risen by between three and five per cent, following the introduction of the green tax.
According to representatives of the Car Dealers Association, the additional tax could raise the price of a single hybrid vehicle by as much as Rs500,000.
Dealers report that showroom activity remains subdued, with limited consumer interest. They argue that the recent measure will place further strain on the automotive sector.
Rana Kaleem of the Car Dealers Association stated that the promotion of environmentally friendly vehicles is essential for a sustainable future. He emphasised the need for policies that encourage rather than hinder such efforts.
Despite the government’s stated commitment to prioritising green transport solutions, industry figures believe that the imposition of new taxes on eco-friendly cars will hinder their adoption and negatively affect sales.
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