Cabinet endorses new vehicle licensing and registration bylaw

-New regulations aim at addressing irregularities in previous bylaw 

-Licensing fees are now based on pre-customs value not engine capacity

-All cars licensed before January 1, 2025 will not be affected by new bylaw

-New decision seeks to encourage use of electric, hybrid cars 

AMMAN – Putting the validating reasons as addressing deformities, achieving social justice and maintaining legislative and organizational stability, the government on Tuesday endorsed a new car registration and licensing bylaw.

The licensing fees are now based on pre-customs value instead of engine capacity as it was the case before and applies to private vehicles licensed for the first time after January 1, 2025.  

Briefing journalists about the new regulations, Minister of State for Economic Affairs and head of government of economic team Muhannad Shehadeh said the decision also aimed at encouraging the use of electric and hybrid cars as a major pillar of the Economic Modernisation Vision, which seeks to improve quality of life for Jordanians.  

The new amendments will not affect vehicles licensed up until December 31, 2024, regardless of their category, value, or type, whether they run on gasoline, hybrid, or electric systems, he said. "These vehicles will continue to be licensed under the current terms."  

The amendment reduces the licensing fees for hybrid vehicles by 25 per cent and for electric vehicles by 50 per cent compared to equivalent gasoline vehicles licensed after the regulation's enactment.

For electric vehicles with a pre-customs value of JD10, 000 or less, there will be no change to the annual licensing fee, which will remain at JD50 as currently applied.  

The amendments also set a reduced cap for licensing gasoline vehicles registered before January 1, 2025, limiting the maximum fee to JD450.  

As per the new amendments, licensing fees for gasoline-powered vehicles will be JD50 for vehicles with a pre-customs value of JD10,000 or less, JD125 for vehicles with a pre-customs value exceeding JD10,000 but less than JD25,000, JD300 for vehicles with a pre-customs value exceeding JD25,000 but less than JD50,000 , JD500 for vehicles with a pre-customs value exceeding JD50,000 but less than JD100,000, and JD800 for vehicles with a pre-customs value exceeding JD100,000.

Licensing fees for hybrid vehicles will be JD50 for if their pre-customs value is JD10,000 or less, and will be JD100 if above JD10,000 and below JD25,000.  JD200 will be the fee for vehicles valued between JD25,000 and JD50,000 and JD400 for vehicles valued above JD50,000 but below JD100,000, and JD600 for vehicles valued above JD100,000  

As for electric vehicles, JD50 will be the fees for EVs valuing JD10,000 or less before customs, while JD70, JD150, JD250, and JD400 will be the licensing fee for those valuing between JD10,000 and JD25,000,  JD25,000 and JD50,000,  JD50,000 and JD100,000 and above JD100,000 respectively.  

According to the new bylaw, a 20 per cent reduction in the annual licensing fee will be applied to vehicles licensed after January 1, 2025, after five years from the vehicle's manufacturing date, regardless of its type, to account for the depreciation in market value over time.