Hybrid car market picks up following tax decrease

Jordan

Published: 2018-07-02 14:58

Last Updated: 2018-07-02 17:39


The government increased the tax imposed on the cost-efficient vehicles from 12.5% to 55% earlier this year. (Roya Arabic)
The government increased the tax imposed on the cost-efficient vehicles from 12.5% to 55% earlier this year. (Roya Arabic)
Roya News Source

Since the government reduced the tax imposed on Hybrid cars from 55% to 30% - valid until the end of 2018 - last month, the Hybrid car market witnessed a noticeable improvement in the number of vehicles purchased, especially in the duty free area in the Zarqa Governorate.

Chairman of the Jordanian Free Zones Investors Association, Nabil Rumman, told Roya on Monday that “the Hybrid car market has picked up once again since the government’s tax amendments were announced last month.”

The government’s amendments, which were announced last Wednesday, came into effect on Sunday.

Rumman said that 1,600 Hybrid cars will go through customs under the new tax amendments in the next few days. That’s a big jump from the 200 Hybrid cars that went through customs over the past four months, after the government increased the tax imposed on the cost-efficient vehicles from 12.5% to 55% earlier this year.

The government added in its announcement on Wednesday that after the end of the current year, the tax on Hybrid cars will increase to 35% until the end of 2019, after which it will go up to 40% until the end of 2020 and 45% until the end of 2021.