‘Tax cut on EVs drives surge in clearances, licensing’

AMMAN — Over 1,400 electric vehicles are set for clearance at the Zarqa Free Zone, following the government's recent decision to reduce the special tax on electric cars by 50 per cent, President of the Jordan Free Zone Investor Commission (JFZIC) Mohammad Bustanji said on Tuesday.

Bustanji said that more than 200 vehicles have already been cleared, received their license plates, and left the free zone, according to the Jordan News Agency, Petra. 

He also noted that more than 1,200 vehicles have passed inspections for specifications and standards and are awaiting the completion of the electronic link between the Jordan Standards and Metrology Organisation (JSMO) and the Licensing Department to finalise the clearance and licensing process.

Bustanji also projected that the daily clearance rate would remain around 500 vehicles until early next week, with over 600 customs declarations expected to be processed by the end of the day.

Efforts are ongoing to clear and license between 300 and 400 vehicles per day in the coming days, Bustanji said, commending the coordination between customs, licensing, and free zone teams in handling the high demand.

Electric vehicle investor Haitham Qteishat highlighted the smooth clearance process, noting that the tax reduction has significantly boosted investor confidence and expedited vehicle clearances.

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