Government introduces updated vehicle licensing regulations

The government has established the pre-customs value of vehicles as the basis for calculating licensing fees, moving away from the engine capacity model for new vehicles licensed for the first time after Jan. 1, 2025.

These changes will not apply to vehicles licensed before Dec. 31, 2024, irrespective of their category, value, or type, which will continue to follow the existing licensing system.

The objective of these adjustments is to ensure fairness and rectify distortions in the current method of calculating licensing fees, in line with global trends in the automotive industry that emphasize vehicle price over engine capacity.

The modifications promote the purchase of energy-efficient vehicles by reducing annual licensing fees for hybrid vehicles by 25 percent and for electric vehicles by 50 percent compared to gasoline vehicles licensed under the new system.

There will be no changes to the licensing fees for electric vehicles valued at less than JD 10,000 (excluding customs), which will remain at JD 50.

Additionally, licensing fees will be reduced by 20 percent for vehicles licensed after Jan. 1, 2025, five years after their initial registration, reflecting the decrease in their market value over time.