Jordan announces new tax adjustments for electric cars

The Jordanian Cabinet, in its session today, Saturday, decided to reduce the special tax on fully electric cars. For electric vehicles with a customs value between JD10,000 and JD25,000, the tax will be reduced from 40% to 20%. For those with a value above JD25,000 , the tax will drop from 55% to 27.5%.

This exemption applies to electric cars stored in bonded areas or free zones within the kingdom before this decision. People who cleared their electric vehicles since the 2024 tax system amendment will receive a refund for the tax difference.

The decision is valid until Dec. 31, 2024, after which the original tax rates will apply again. The government took this step after a two-month study and feedback from experts, aiming to ease the burden on citizens and importers and promote electric vehicle adoption. Cars under JD10,000 in customs value remain fully exempt from the tax to encourage energy-efficient, eco-friendly transportation.