Cabinet approves tax reforms to address vehicle, tobacco tax disparities

AMMAN — The Cabinet approved an amendment to the Special Tax Bylaw for 2024, introducing changes that reduce the special tax on gasoline-powered vehicles while gradually increasing it for higher-priced electric vehicles.

The amendments aim to reduce the tax gap between electric vehicles and other types while ensuring that electric vehicles will still benefit from a lower tax rate compared with gasoline-powered vehicles, the Jordan News Agency, Petra, reported. 

The updated bylaw also adjusts taxes on tobacco products, aligning with the national strategy to combat tobacco use and curb the rising popularity of electronic cigarettes. It also addresses the significant tax disparity between traditional cigarettes and other tobacco products.