In a significant development for car buyers, Toyota Indus Motor Company has announced a major reduction in the prices of its popular off-road SUV, the Toyota Fortuner, in Pakistan.
Following the revision, the Fortuner has become up to PKR 2.5 million cheaper, sparking fresh interest among SUV enthusiasts and potential buyers.
Why Toyota Reduced Fortuner Prices
According to details shared on PakWheels, automotive expert Suneel Munj explained in a podcast that the price cut is largely driven by government tax reductions.
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Around PKR 1.5 million of the price reduction comes from lower government taxes
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The remaining PKR 1 million has been absorbed by Toyota by reducing its own profit margin
This combination has resulted in an unusually large overall price drop.
Toyota CEO Confirms Price Adjustment
Toyota Indus Motor Company CEO Ali Asghar Jamali also confirmed the reasons behind the price reduction.
He stated that the government’s decision to reduce taxes created room for a substantial price decrease, while the company further supported consumers by cutting its own margins to make the vehicle more affordable.
How Taxes Impact Car Prices in Pakistan
According to the company, 55 to 65 percent of a vehicle’s price in Pakistan consists of taxes, including:
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Sales tax: 25%
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Federal Excise Duty (FED): 10%
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Other applicable government levies
When taxes were reduced, the base price dropped, which in turn further reduced the overall tax burden — making a large price cut possible.
What This Means for Car Buyers
Industry analysts believe this move could:
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Renew interest in high-end SUVs
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Encourage buyers who were waiting for price stability
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Signal a possible shift in auto pricing trends if tax relief continues
However, experts also caution that future prices will depend heavily on government policies and economic conditions.
