ISLAMABAD – The prices of large engine vehicles, including popular models such as the Toyota Fortuner and Toyota Revo, are expected to increase from July 2026 following the federal government’s decision to impose a Federal Excise Duty (FED) in the Budget 2026–27.
Finance Minister Muhammad Aurangzeb presented the budget in the National Assembly, outlining a total outlay of Rs18,771 billion.
As part of the new fiscal measures, a significant excise duty will be applied to vehicles with engine capacities above 2,000cc.
The new tax structure will affect both imported completely built units (CBUs) and locally assembled vehicles in the same category. This means that large SUVs, luxury sedans, and high-powered pickups in this segment are likely to become considerably more expensive.
Industry observers said the move will directly impact popular models such as the Toyota Fortuner, Toyota Revo, and other premium vehicles, as their invoice prices are expected to rise due to the additional tax burden.
The development is likely to reshape demand in the high-displacement vehicle market as buyers adjust to increased costs under the new budget framework.
