Jordan cuts customs duties on imported vehicles
The Jordanian Cabinet, chaired by Prime Minister Dr. Jafar Hassan, approved on Saturday an amended special tax system for 2025 that reduces total taxes (both general and special) on vehicles. This comprehensive structural reform aims to significantly lower costs for citizens.
The decision includes substantial reductions in overall taxes and customs duties on vehicles, addressing financial and structural imbalances in the sector. It also seeks to diversify vehicle options by lowering acquisition costs, complementing ongoing government efforts to reduce expenses and improve quality of life.
Under the amendment, total taxes on different vehicle types will be reduced as follows:
Gasoline cars: from 71 percent to 51 percent, a reduction of 28 percent
Hybrid cars: from 60 percent to 39 percent, a reduction of 35 percent
The special tax on electric vehicles will be fixed and unified at 27 percent for all categories, regardless of vehicle value or type.
This replaces the previous graduated tax system, which planned to raise taxes up to 55 percent over three years, announced late last year.
Customs duties on scooters and motorcycles will be reduced from 45 percent to 33 percent, a decrease of 26 percent, aiming to encourage their use, reduce fuel dependence, and help ease traffic congestion and environmental pollution.
The General Customs Department will begin implementing the new tax system starting Sunday morning, June 29, 2025.
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Jordan cuts customs duties on imported vehicles
The Jordanian Cabinet, chaired by Prime Minister Dr. Jafar Hassan, approved on Saturday an amended special tax system for 2025 that reduces total taxes (both general and special) on vehicles. This comprehensive structural reform aims to significantly lower costs for citizens. The decision includes substantial reductions in overall taxes and customs duties on vehicles, addressing financial and structural imbalances in the sector. It also seeks to diversify vehicle options by lowering acquisition costs, complementing ongoing government efforts to reduce expenses and improve quality of life. Under the amendment, total taxes on different vehicle types will be reduced as follows: Gasoline cars: from 71 percent to 51 percent, a reduction of 28 percent Hybrid cars: from 60 percent to 39 percent, a reduction of 35 percent The special tax on electric vehicles will be fixed and unified at 27 percent for all categories, regardless of vehicle value or type. This replaces the previous graduated tax system, which planned to raise taxes up to 55 percent over three years, announced late last year. Customs duties on scooters and motorcycles will be reduced from 45 percent to 33 percent, a decrease of 26 percent, aiming to encourage their use, reduce fuel dependence, and help ease traffic congestion and environmental pollution. The General Customs Department will begin implementing the new tax system starting Sunday morning, June 29, 2025.
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