Special tax on hybrids to increase by 10% at start of 2022

AMMAN — The special tax on hybrid vehicles is set to increase by 10 percent at the start of next year, bringing the total tax on hybrid vehicles to 55 percent.اضافة اعلان

The decision was originally approved by the government of former prime minister Samir Al-Rifai in 2010, and was explained at the time as a way of addressing the imbalance resulting from the complete tax exemption granted to hybrid cards at the time, and the effect that had on the country’s vehicle market. Furthermore, the larger the engine, the less environmentally friendly the hybrid engine was, officials explained. 

The Rifai government imposed a special tax on hybrid vehicles in June 2010, regardless of the engine capacity, of 55 percent.

Speaking to Roya on Sunday, the representative of the vehicle sector in the Jordanian Free Zones Investors Commission Jihad Abu Nasir said that there is inflation in the world’s vehicle market as a result of the disruption of global supply chains, and a shortage of semiconductors led to a 50 percent drop in the production of some car factories.

Abu Nasir added that cars in the world market were below demand, so car prices around the world are high.

Abu Nasir also noted that the Jordanian market imports vehicles from the Korean, US, European, and Gulf markets, and the rise in the price of these vehicles came as a result of the preceding reasons from the markets from which Jordan imports 20 percent, 50 percent, 30 percent and 10 percent of its vehicles respectively.

Abu Nasser also reported that since the beginning of this year freight fares have doubled, in addition to increasing the duration of the cargo’s arrival at the port, instead of arriving in three months, it has reached five months.

He noted that the government would not reverse its decision to impose a special tax on hybrid vehicles, referring to the statements made by Finance Minister Mohamed Al-Ississ that there was a need for legislative stability in order to reflect positively on investment.

Abu Nasir expected the value of one vehicle to increase by an average of JD2,000, with the clearance of vehicles interrupted or reduced during the first three months of next year, owing to the absence of a stock of vehicles.

For his part, the chairman of the Jordan Investment Commission, Mohamed Al-Bustanji, confirmed to Roya that the decision to increase the special tax rate on hybrid vehicles was “a matter of time”, and that the decision would come into effect early next year.

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