Jordan's Prime Minister Dr. Jafar Hassan announced significant economic reforms as 2024 draws to a close.

 

On Tuesday, the government revealed a series of measures, including amendments to private vehicle licensing regulations and a phased approach to increasing taxes on electric vehicles over three years.

 

The reforms are part of a broader effort to modernize the economy, promote sustainable practices, and address revenue challenges.

 

New Vehicle Licensing Regulations

 

The Cabinet approved amendments to the vehicle registration and licensing system for 2024. The new rules will base licensing fees on the pre-customs value of vehicles rather than engine capacity. This applies to private vehicles registered after January 1, 2025.

 

Existing vehicles registered by December 31, 2024, will remain unaffected by the changes, regardless of their type, fuel category, or value. These amendments aim to correct distortions in the current fee system and promote energy-efficient and environmentally friendly vehicles, such as hybrids and electric cars.

 

Under the new regulations:

 

Hybrid vehicle licensing fees will be reduced by 25%.

Electric vehicle fees will be reduced by 50% compared to gasoline-powered vehicles of similar value.

For electric vehicles valued at JD 10,000 or less before customs, the annual licensing fee will remain JD 50.

 

Reduced Licensing Caps for Gasoline Vehicles

 

The revised system also sets a reduced cap for licensing gasoline vehicles registered before January 1, 2025, with a maximum fee of JD 450.

 

Licensing fees based on pre-customs value are as follows:

 

Vehicles valued at JD 10,000 or less: JD 50.

Vehicles valued between JD 10,001–25,000: JD 125.

Vehicles valued between JD 25,001–50,000: JD 300.

Vehicles valued between JD 50,001–100,000: JD 500.

Vehicles valued above JD 100,000: JD 800.

Hybrid Vehicle Licensing Fees:

 

JD 50 for vehicles valued at JD 10,000 or less.

JD 100 for vehicles valued between JD 10,001–25,000.

JD 200 for vehicles valued between JD 25,001–50,000.

JD 400 for vehicles valued between JD 50,001–100,000.

JD 600 for vehicles valued above JD 100,000.

Electric Vehicle Licensing Fees:

 

JD 50 for vehicles valued at JD 10,000 or less.

JD 70 for vehicles valued between JD 10,001–25,000.

JD 150 for vehicles valued between JD 25,001–50,000.

JD 250 for vehicles valued between JD 50,001–100,000.

JD 400 for vehicles valued above JD 100,000.

A 20% discount on licensing fees will apply after five years of the vehicle’s manufacture date to address depreciation.

 

Gradual Tax Increase on Electric Vehicles

 

The Cabinet also introduced a gradual tax hike on electric vehicles over three years (2025–2027), replacing the previously planned direct increase in 2025. This phased approach aims to support both consumers and importers while maintaining market stability.

 

Vehicles valued under JD 10,000 before customs:

 

2025: 10% tax

2026: 12% tax

2027: 15% tax

Vehicles valued between JD 10,001–25,000 before customs:

 

2025: 30% tax

2026: 35% tax

2027: 40% tax

Vehicles valued above JD 25,000 before customs:

 

2025: 40% tax

2026: 45% tax

2027: 55% tax

The reforms aim to promote fairness, ease financial burdens, and align with global trends in vehicle manufacturing and environmental sustainability.

 

For more details on the new licensing and taxation systems, visit the official government website.