The Chairman of the Free Zones Investors Commission, MP Mohammad Al-Bustanji, announced a significant decline in customs clearance for electric vehicles in Jordan during October, with a drop of 73% compared to the previous eight months of this year.

Al-Bustanji indicated that the main reason for this decline is the recent increase in customs duties on electric vehicles. The government has imposed a 40% tax on vehicles with an estimated value exceeding 10,000 Jordanian dinars and raised the tax to 55% for vehicles valued above 25,000 dinars.

He mentioned that this decision has raised widespread concerns among traders, who fear negative impacts on their businesses, with an increasing risk of bankruptcy and business closures.

Al-Bustanji also noted that customs clearance for gasoline vehicles decreased by 13%, and for diesel vehicles by 17%, while hybrid vehicles saw a notable growth of 22%, reflecting a shift in market trends.

He added that the changes to the tax on electric vehicles have resulted in suspending the clearance process for approximately 18,000 electric cars that were brought in before the new tax regulations. This has caused market disruptions and challenges for traders in completing clearance procedures due to the high fees.

He further explained that among these vehicles, more than 5,000 had deposits paid and were shipped, yet the increased customs fees have made it challenging for traders to finalize the clearance procedures for these cars.

In an effort to ease the burden, the Free Zones Investors Commission presented proposals to the government, including exempting vehicles that entered the free zones before the new tax was implemented and allowing their clearance under the previous system. They also suggested unifying tax rates to ensure fairness and reduce the negative impacts on the automotive sector in the free zones.