Honda 70 Prices Rise Amid New Taxes
The new taxes and price hikes will likely affect the demand for vehicles and motorcycles in Pakistan, with many consumers potentially delaying their purchasing decisions or opting for more affordable alternatives. As the country navigates its economic challenges, the impact of these taxes on the automotive industry and consumers will be closely watched.
The federal government's decision to impose new taxes has led to a price increase in popular vehicles and motorcycles, including the Honda 70, affecting affordability for many Pakistanis.
The General Sales Tax (GST) on cars with engine capacities up to 850cc has been increased from 12.5% to 18%, which will impact the prices of entry-level vehicles like the Suzuki Alto and Suzuki Every. Additionally, a Climate Support Levy (CSL) of 1% to 3% has been introduced, depending on engine size, and a carbon tax of Rs. 2.5 per liter on fuel has been imposed to encourage the transition to hybrid and electric vehicles.
Atlas Honda Limited, Pakistan's leading motorcycle manufacturer, has increased the prices of its bikes, including the CD-70 and CB-150F, due to a 1% Carbon Levy imposed on imported motorcycle engines. The price hike ranges from Rs2,000 to Rs6,000 across various models, effective from July 1, 2025. The revised prices of various models include the CD-70 (Rs159,900), CD-70 Dream (Rs170,900), Pridor (Rs211,900), CG-125 (Rs238,900), and higher-end models like the CB-125F (Rs396,900) and CB-150F (Rs499,900).
The price increase is expected to impact affordability for a large segment of the population already coping with high inflation, as Atlas Honda holds over half of the motorcycle market share in Pakistan. The government's decision to impose new taxes aims to encourage the transition to environmentally friendly vehicles, but it may have a significant impact on the purchasing power of ordinary citizens.