In a move aimed at promoting fairness and transparency in the automotive sector, the Cabinet has approved a series of new measures, including a graduated mechanism for calculating special taxes on electric vehicles (EVs) and amendments to the vehicle licensing fee system. These decisions are based on vehicle values before customs duties rather than engine capacity.

Special Tax on Electric Vehicles: A Graduated Approach

A new graduated mechanism for calculating special taxes on electric vehicles has been introduced. This system will be implemented gradually over three years, from 2025 to 2027, to ensure legislative stability, facilitate adaptation to global automotive market changes, and support the private sector and consumers.

Vehicles Valued at Less Than 10,000 JD Before Customs:

2025: 10%

2026: 12%

2027: 15%

Vehicles Valued Between 10,000 JD and 25,000 JD Before Customs:

2025: 30%

2026: 35%

2027: 40%

Vehicles Valued Above 25,000 JD Before Customs:

2025: 40%

2026: 45%

2027: 55%

Tax Reductions to Boost Competitiveness

Additionally, the total tax on gasoline vehicles has been reduced from 86% to 70%, while the special tax on hybrid vehicles remains fixed at 60%. However, the prices of electric vehicles will still be lower than those of gasoline-powered vehicles, encouraging a shift toward environmentally friendly options.

New Vehicle Licensing Fee System

To address previous distortions in the method of calculating licensing fees, the government has decided to base fees on vehicle values before customs duties. This new system will be implemented starting January 1, 2025, and will not apply to vehicles registered by the end of 2024.

Licensing Fees for New Vehicles (Post-2025):

Gasoline Vehicles:

Less than 10,000 JD: 50 JD

10,000–25,000 JD: 125 JD

25,000–50,000 JD: 300 JD

50,000–100,000 JD: 500 JD

Above 100,000 JD: 800 JD

Hybrid Vehicles:

Less than 10,000 JD: 50 JD

10,000–25,000 JD: 100 JD

25,000–50,000 JD: 200 JD

50,000–100,000 JD: 400 JD

Above 100,000 JD: 600 JD

Electric Vehicles:

Less than 10,000 JD: 50 JD

10,000–25,000 JD: 70 JD

25,000–50,000 JD: 150 JD

50,000–100,000 JD: 250 JD

Above 100,000 JD: 400 JD

Additional Licensing Fee Reductions

Licensing fees will be reduced by 20% for vehicles licensed after 2025 once they reach five years of registration, reflecting their depreciation over time.

Goals of the New Regulations

These amendments aim to achieve equity across all vehicle categories, encourage the adoption of energy-efficient and eco-friendly vehicles, and support citizens by reducing future vehicle costs. They also enhance pre-planning for commercial sectors in alignment with global shifts in the automotive industry.

Expected Impact

These changes position Jordan to better adapt to global economic and technological transformations while ensuring sustainability and fairness for citizens and investors alike.