Car dealers ‘to continue strike until demands met’

AMMAN — Traders at the Jordan Free Zone said on Sunday they will continue their strike until the government responds to their demands to reverse recent tax hikes on used cars.

The dealers are refusing to sell any vehicles in protest over the government’s decisions in June to reduce tax exemptions on imported used cars and increase the ownership transfer fees of private vehicles.

Around 4,000 people are employed in some 600 that dealerships in the free zone. 

The government’s decision will affect business and all stakeholders, particularly middle and low-income households, said Nabeel Rumman, the president of the Jordan Free Zone Investor Commission. 

“The reduction in tax cuts is only on used cars, not new ones, which means the increased taxes affect people with limited income who buy used cars, and not the rich people who usually buy new and expensive vehicles,” Rumman told The Jordan Times.

He requested a meeting with Prime Minister Hani Mulki to resolve the issue, voicing hope that the outcome would lead to ending the strike. 

Economic conditions in Jordan are already “very tough” because of the closure of traditional markets in Iraq, Libya and Yemen, Rumman said, adding that the new measures would make the situation worse. 

The decision to lower the rate of tax exemptions on used cars increased prices by 8 to 17 per cent, depending on the model and engine size, Rumman told The Jordan Times in a previous interview.

The Treasury receives around JD500 million a year from the automobile sector, but this number is likely to fall because of the increase in customs duties and also due to the “reckless” move by the government to increase ownership transfer fees of cars, he charged in June.