ALBAWABA - The Jordanian government announced the approval of an amendment to the Special Tax Bylaw for 2024. The new law will decrease taxes on gasoline while progressively increasing taxes on electric cars.
Increased special tax on electric cars
According to the Jordanian Prime Ministry, the new amended law aims to reduce the gap of the current special tax rates on electric vehicles and those on gasoline-powered cars. Muhannad Mubaideen, Jordanian government spokesperson, said: “The decision to lower the tax on gasoline cars and increase it on higher-end electric vehicles aims to address an economic imbalance.”
It is worth noting that electric vehicles that are priced at less than $14,200 (10,000 JOD) will not be subject to the new tax law, according to the government. However, vehicles priced at more than $14,200 (10,000 JOD) and less than $35,000 (25,000 JOD) will incur a special tax of approximately 40%. Additionally, a special tax of nearly 55% will be imposed on vehicles priced above $35,000 (25,000 JOD).
Electric vehicles that are priced at less than $14,200 (10,000 JOD) will not be subject to the new tax law, according to the government. (Shutterstock)
Amer Al-Shoubaki, a Jordanian oil expert, said the new decision made by the government can be directly linked to concerns about declining revenues from fuel taxes. Al-Shoubaki explained that the recent boost in electric cars in the Jordanian market recently led to a significant decline in fuel tax revenues, impacting both government finances and the economy.
The oil expert is expecting a negative impact on the electric vehicles market after the recent amended tax law. Some vehicles could see price increases of 400% to 450%, potentially leading to a significant recession in the market.
Jordanian economy struggles
It is worth noting that the Jordanian economy faced many challenges recently. Public debt increased by $50 billion and the unemployment rate reached 21% in the first quarter of 2024, according to Agence France-Presse (AFP).
Additionally, the war on Gaza affected various sectors in Jordan, including tourism, which in turn affected public revenue and the overall economy.
