Clearances issued for 11,000 EVs since Cabinet decision to reduce tax

AMMAN — Clearances for some 11,000 electric vehicles (EVs) have been processed since the issuance of a Cabinet decision reducing customs fees, Jihad Abu Nasser, representative of the automobile sector at the Jordan Free Zone Investor Commission (JFZIC) said on Saturday. 

Speaking to Al Rai daily, Abu Nasser said that there are still some 1,000 EVs pending clearance, expecting the processes to be completed during this week.

He pointed out that there are around 2,000 EVs that arrived at the market on November 23, which are not included in the decision.

The recent Cabinet decision, effective until December 31, reduces the special tax on fully EVs with a customs value between JD10,000 and JD25,000 from 40 per cent to 20 per cent, offering a "substantial incentive for investors."

The decision also reduces the special tax on fully EVs with a customs value exceeding JD25,000 from 55 per cent to 27.5 per cent.

The total volume of vehicle clearances had increased by around 12 per cent during the first half of 2024, Abu Nasser said in recent remarks.

Abu Nasser noted that EVs dominated the clearance figures in the January-June period of 2024, accounting for 66.5 per cent of the total at the Zarqa Free Zone, adding that a total of 22,604 EVs were cleared, compared with 13,861 for the same period in 2023, marking a 63 per cent increase.

The tax cuts as per the Cabinet decision apply to EVs currently stored in bonded warehouses or free zones in Jordan.

In addition, individuals who registered their EVs after the implementation of the amended Special Tax Regulation No. 62 of 2024 and before this decision will receive a refund of the difference in taxes paid.

The reductions are a one-off measure and will not be renewed, according to the Cabinet decision.

From January 1, the rates will return to their original levels: 40 per cent for vehicles worth between JD10,000 and JD25,000, and 55 per cent for vehicles over JD25,000.

Electric cars with a customs value of less than JD10,000 are not affected by the decision and will continue to be taxed at 10 per cent, reflecting the government's continued support for middle-income buyers.