Amman, Jordan Chambers of Commerce oppose new tax on electric vehicles

The Amman and Jordan Chambers of Commerce opposed the government’s decision under former Prime Minister Bisher Al-Khasawneh to raise taxes on electric vehicles progressively.

In a large meeting on Sunday, auto dealers at the Amman Chamber of Commerce (ACC) argued that the decision undermines the principle of public-private partnership.

Khalil Al-Haj Tawfiq, President of the Amman and Jordan Chambers of Commerce, criticized the decision for being made without consulting traders and for conflicting with principles of cooperation between the public and private sectors.

The Cabinet approved an amended special tax system for 2024, which reduces the special tax on gasoline vehicles while progressively increasing it on higher-priced electric vehicles.

The government stated that these amendments aim to narrow the tax gap between electric vehicles and other vehicles while maintaining a lower tax on electric vehicles compared to other alternatives.

Government spokesperson Muhannad Al Mubaidin explained that the decision to lower the tax on gasoline cars and raise it on higher-priced electric vehicles is intended to correct economic imbalances.

He added that electric vehicles priced at JD 10,000 before customs duty will not be subject to the tax increase.

Additionally, the special tax on gasoline vehicles has been reduced to 60 percent from 67 percent, and hybrid vehicles are taxed at the same rate.

The Cabinet's decision to amend the special tax system for 2024 includes these changes.