Jordan reduces special tax on electric cars by 50%

Arab Weather - The Jordanian government decided, yesterday, Saturday, to exempt electric cars completely from 50% of the special tax imposed on them, with the aim of promoting the use of electric cars in the Kingdom.

Electric car tax reductions according to customs value

1. Cars with a customs value of more than 10 thousand dinars and less than 25 thousand dinars: the tax has been reduced from 40% to 20%.
2. Cars with a customs value exceeding 25 thousand dinars: The tax has been reduced from 55% to 27.5%.
3. Cars stored in free zones and bonded: The decision includes electric cars stored in free zones or bonded within the Kingdom before its issuance. It also includes a refund of the tax difference for citizens who have cleared their cars since the amendment of the tax system in 2024 until the date of implementation of the new decision.
4. Validity period of the decision and the government’s position on renewal: This decision is applicable until December 31, 2024, with the government confirming that it will not be extended after this date.
5. Cars with prices less than 10 thousand dinars are completely exempt from tax: Electric cars with a customs value of less than 10 thousand dinars are completely exempt from the special tax, with the aim of supporting middle-income citizens and providing sustainable and environmentally friendly transportation solutions.

The government took this decision after careful consideration of the comments made by specialists and stakeholders. It aims to address the special situation of cars in the free zones that entered the Kingdom before the decision was issued and were not cleared, in addition to promoting the shift towards electric transportation and reducing environmental emissions.

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