Dealers call for lower taxes on hybrids as customs, COVID bite

Car dealers are calling on the government to ease customs duties on hybrids after years of increases and now, the pandemic. (Photo: Unsplash)
Car dealers are calling on the government to ease customs duties on hybrids after years of increases and now, the pandemic. (Photo: Unsplash)
AMMAN — Cars dealers have asked the government to lower taxes on imported hybrid cars, saying that their losses have increased and that they need solutions fast.اضافة اعلان

Mohammad Abdul Karim, a car dealer, told Jordan News that "I have a car trading company, and I suffered from huge losses, even before the pandemic."

Abdul Karim added that "people, after hybrid cars had been released, started to demand hybrids more than gasoline cars, but when the government announced that the taxes on these cars would be increased, the demand decreased."

Since a Cabinet decision to raise clearance taxes on hybrid vehicles in 2018, those looking to buy hybrid have had to contend with yearly increases in customs. In 2021, the clearance tax on imported hybrid vehicles was 45 percent. 

"The government should now reconsider such decisions. It must take a new decision immediately to lower taxes on hybrid cars to help us compensate the losses" Abdul Karim said, adding that "customers are also affected by such decisions, usually, they prefer hybrid cars as they are cheaper and consume less gasoline."

Mohammad Al-Assi, another car dealer, told Jordan News that "our circumstances as car dealers are hard; it is not just about hybrid cars. I can tell that the demand for all cars in general had decreased due to the difficult economic situation."
On another hand, citizens that spoke to Jordan News said that the increase on taxes had not just affected car dealers but also people who want to buy hybrid cars.

Mohammad Dabbas, a citizen, told Jordan News that "I wanted to buy a hybrid car because such cars consume less gasoline, especially since my job requires me to use my car for hours and I cannot afford to always fuel up my car."

Dabbas added that "unfortunately the government is significantly increasing the taxes without paying attention to our conditions as citizens. I guess that buying cars is now limited to rich people who can afford to buy them."

"I visited so many countries, and Dubai is one of them — and although the majority of people in Dubai are rich, cars are also cheaper, I wonder why in Jordan cars are that expensive" he said, adding that "having a new car in Jordan is just a dream."

The head of the Jordanian Free Zones Investment Commission, Muhammad Al-Bustanji, recently announced that imports of hybrids decreased at a rate of more than 50 percent per month during 2021, compared to the monthly rate of clearance during 2020.

Bustanji pointed out in his press statement that the monthly clearance of hybrids during 2020 stood at about 1,600 vehicles, compared to an average of 650 vehicles that were cleared per month during 2021.

Bustanji added that during the first five months of the year, 11,500 gasoline and diesel vehicles, 3,200 hybrid vehicles, and 1,000 electric vehicles, were imported.

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