Unprecedented Recession in the Automotive Sector at the Free Zone

10 months ago

Following the recent tax decisions regarding electric vehicles, the Free Zone has experienced a stagnation burdening both Jordanian traders and consumers, who are cautiously waiting in the hope that the decision will be amended to benefit the automotive sector.


Jihad Abu Nasser, the "Representative of the Automotive Sector at the Free Zones Investors Commission," stated that there is a flaw in the system that passed this decision, especially with its sudden timing on the last day of the previous government's term. He described the statement made by Minister of Industry, Ya'rob Al-Qudah, regarding the market waiting before reviewing the impact of the tax on electric vehicles as a good statement, especially compared to the government's earlier position after reversing its decision and continuing with no modification or delay.


Abu Nasser also noted that no customs clearance has been done on any new electric vehicle in the price categories exceeding 10,000 Jordanian Dinars—the categories affected by the decision—throughout this period, despite the government's awareness of the clear issue.


Read More: How does the increase in taxes on electric cars impact the growth of the used car market in Jordan?



He added that although the government reduced the tax on gasoline cars, demand for them has remained at a normal level. Regarding hybrid vehicles, they have seen a decline due to the suspension of the write-off books that used to reduce customs fees by 15% for Jordanian consumers.