After Budget, Lexus Prices Reduced by Rs.1.2 Crore

Pakistani luxury car buyers have received a major boost after the Finance Act 2025 introduced sweeping tax cuts on imported vehicles. Among the winners is Lexus, with prices now decreasing by up to PKR 1.2 crore on some models. The changes aim to encourage formal imports, curb grey-market smuggling, and align vehicle policy with IMF recommendations.

• Duty cuts: Customs, regulatory, and additional customs duty (ACD) have been reduced—ACD lowered from 7% to 6% ([turn0search0])

• Impact: Luxury SUVs like Lexus LX570/LX600 saw reductions of up to PKR 7.8 million; overall drops near PKR 1.2 crore for top trims

• Objective: Support the formal market, boost luxury vehicle access, and reduce illegal imports

• Policy-driven affordability
  The Finance Act 2025 cut duties across the spectrum—CD, RD, and ACD—making luxury cars more accessible to wealthy buyers 

• Formal import incentives
  Price drops encourage buyers to source through official dealers, supporting legal trade channels.

• Grey-market reduction
  Narrowing price gaps reduces grey imports, tackles duty avoidance, and supports industry compliance.

• IMF & economic goals
  Aligns with the IMF's advice to lower tariffs and rationalize import taxes as part of fiscal reforms

• High-net-worth buyers now see luxury SUVs cost up to PKR 8 million less on top trims, enabling purchases previously out of reach.

• Luxury segment revival: Dealers anticipate increased inquiries, test drives, and formal import volumes.

• Resale adjustment: Used luxury SUV prices may adjust downward to match new benchmarks.

• Market reshuffle: Other luxury brands may follow suit; import competition could improve.

• Currency effect still matters: Rupee value will influence final sticker prices, despite duties falling.

• Visit authorized dealers to get updated on-road pricing.

• Compare across models, focusing on trims like LX600 versus LC300 ZX for value.

• Grade budget carefully: Savings at this level may influence financing and timing.

• Monitor grey-market dynamics—even cheaper imports, and formal deals may offer better support.

• Track currency trends—further value adjustments depend on PKR‑USD swings.

• Duty reforms also hit imported luxury vehicles broadly (e.g, Prado, Land Cruiser) 

• Import age limit relaxation is planned, potentially extending relief to older vehicles and further market expansion.

• IMF-aligned tariff policy envisions gradual annual cuts through 2030.

Following the Budget 2025–26 imported Lexus SUVs in Pakistan have seen significant price adjustments, up to PKR 1.2 crore in savings for high-end trims. These reliefs reflect a broader policy shift to promote formal imports, align with international fiscal goals, and support luxury market access. For affluent buyers, this marks a rare opportunity to enter or upgrade within the Lexus range at a notably lower cost. For the auto sector, it signals a revitalized luxury car segment and underscores changing government priorities.