Jordan’s customs clears 1,200 electric cars ahead of tax hike

Around 1,200 electric vehicles have been cleared by the Jordanian customs over the past three days, with an average of about 400 vehicles per day – according to the representative of the vehicle sector at the Free Zones Investors Commission Jihad Abu Nasser.

"99% of the cars that met the government’s decision [to impose additional taxes on certain electrical vehicles] have been cleared, meaning that everyone who benefited from the decision will have their vehicles cleared before the end of the year, before the tax increase on electric vehicles," Abu Nasser said. 

Earlier, he explained that the government's decision to reduce taxes would apply to approximately 12,000 vehicles, all of which are expected to be cleared by the end of the year.

He also pointed out that 8,000 electric vehicles have been cleared since the tax reduction decision began, and he anticipates another 4,000 electric vehicles will be cleared by December 31.

Abu Nasser confirmed that indicators suggest the government will not extend the exemption decision for fully electric vehicles from the 50 percent and 55 percent taxes. He explained that the work of the Customs Department during official holidays suggests there is no intention to extend the decision.

The Cabinet decided to exempt fully electric vehicles with a customs value between 10,000 and 25,000 Jordanian Dinars from 50 percent of the special tax, reducing it to 20 percent instead of 40 percent.

Vehicles valued above 25,000 Dinars will be exempt from 50 percent of the tax, reducing it to 27.5 percent instead of 55 percent.

Will electric vehicle sales decline?

Abu Nasser predicted a drop in electric vehicle sales once the government’s decision to increase taxes on these vehicles takes effect.

He explained that the government’s latest decision set the tax on electric vehicles at 20 percent, up from the previous 10 percent, which "prepared citizens to gradually cope with the price increase of vehicles."

He added that electric vehicle sales in Jordan would not return to the previous level of around 4,000 vehicles per month once the government decision takes effect.