(MENAFN- Jordan News Agency)
Amman, Dec. 31 (Petra) -- The Cabinet has approved a new graduated mechanism for calculating the special tax on electric vehicles, set to be applied over three years, from 2025 to 2027. The decision replaces the previously planned immediate application of the tax starting January 1, 2025.
The newly adopted mechanism marks a comprehensive reform in regulating the entire vehicle sector, ensuring fairness and alleviating the burden on citizens through a phased implementation. This gradual approach allows commercial sectors to plan effectively and adapt to global changes in the automotive market, industry trends, and consumer purchasing behavior.
The comprehensive approach to the vehicle sector seeks to address disparities and promote fairness, with a reduction in the overall tax on gasoline vehicles from 86% to 70%, and the special tax on hybrid vehicles set at 60%.
For electric vehicles valued under JD 10,000 before customs widely used by citizens, the special tax will remain at 10% in 2025. This will increase to 12% in 2026 and 15% in 2027.
Vehicles valued between JD 10,000 and JD 25,000 before customs will see the tax set at 30% in 2025, 35% in 2026, and 40% in 2027.
For vehicles valued over JD 25,000 before customs, the tax will be 40% in 2025, 45% in 2026, and 55% in 2027.
In addition to the adjustments for electric vehicles, the new mechanism includes a reduction in the overall tax on gasoline vehicles, from 86% to 70%. The special tax on hybrid vehicles will remain at 60%, providing a balanced and affordable option for citizens.
The Cabinet also confirmed that the new tax structure will ensure that electric vehicles remain less expensive than gasoline vehicles, even after the reduction in special tax for gasoline vehicles.
The new policy aims to support private sector growth, protect consumers, and align with global trends in the automotive market. The amendments to the special tax system, which are expected to be published in the official gazette, reflect a broader effort to modernize the vehicle sector and ensure legislative stability.
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