JCC chairman says new tax policy on EVs ‘unexpected, unjustified’

AMMAN — Chairman of the Jordan Chamber of Commerce (JCC) Khalil Hajj Tawfiq on Sunday voiced concern over the government's recent decision to increase taxes on high-priced electric vehicles (EVs) without prior consultation with the business community.

Describing the decision as “unexpected and unjustified,” Tawfiq noted that the chamber was not involved in the discussions leading up to the tax change, according to Al Mamlaka TV.

The Amman Chamber of Commerce held a meeting with hundreds of automotive sector dealers to assess the potential impact of the newly imposed tax on EVs.

The Cabinet recently approved amendments to the 2024 special tax regulations, which included reducing taxes on gasoline-powered cars while introducing a progressive tax increase on more expensive EVs.

Tawfiq criticised the official justifications for the tax changes, saying: “These explanations are not convincing. This unfair decision will cripple the free zone and the automotive sector. Consumers will suffer the most, followed by traders and investors.”

He also pointed out that the Kingdom has made significant progress in renewable energy and environmental protection, adding: "We have seen a trend in recent decisions aimed at restricting the use of electric vehicles."

The government has argued that the tax changes aim to narrow the tax gap between EVs and conventional vehicles while ensuring that electric cars still benefit from lower taxes compared with other vehicle types. 

The government also said that no tax increases would apply to EVs priced below JD10,000. However, the tax reduction for petrol cars will be limited to vehicles that are less than five years old.