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Taxation of hybrid and electric cars

Apr 07,2019 - Last updated at Apr 07,2019

I was very surprised reading your article on the taxation of hybrid and electric cars.

The more so because Jordan is usually very keen on promoting new technologies, and has shown its ambitions to catch up on green energy development. Also, the government has taken previous steps to protect the interests of the middle class, which is suffering due to stagnant income and price hikes, among which gasoline prices, now reaching European levels. And, it is true that gasoline consumption has not increased recently in Jordan, contrary to previous years, maybe due to traffic congestion, and maybe due to citizens being more aware of the expenses incurred while using their cars.

Resorting to hybrid and electric cars is a heavy trend, and was even set as a goal in some countries, like France, where financial incentives are given to buy electric cars. This is paired together with policies aiming at improving public transportation infrastructures.

In the actual state of our knowledge, we can consider that the use of hybrid and electric cars is healthier, more respectful of the environment and more cost efficient.

But still, there is a lot that can be done to improve both cost and quality of gasoline in Jordan. The refinery should be able to upgrade its production units, to meet international standards for the production of 90 RON and to start producing 95 and 98, which are cleaner. Improvement in the supply chain would also help reduce costs. Flexibility, partnerships and, above all, institutional support are the name of the game.

The refinery and the distribution companies should be able to diversify and take stakes into green energy projects like most international oil companies are doing. Although this may not bring revenues on short term, this will guarantee their viability on the long run, and protect employment. They could also strike partnerships with the electricity company and/or solar energy providers to build state of the art infrastructures for optimal charging of car batteries and other solar powered services.

All those measures just need imagination, flexibility and will and would help protect the health of the Jordanian people and the economic and environmental interests of the country.


Aline Alabbadi

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