Car dealers picket Prime Ministry over fees on imported used cars

AMMAN — Car dealers on Wednesday held a sit-in near the 4th Circle outside the headquarters of the Prime Ministry to protest the government’s June 22 decision to raise fees on imported used cars.

Importers and dealers of used cars in Jordan’s only free zone in Zarqa have halted sales of vehicles in protest against the government measures, which would cause a slowdown in the domestic auto market, according to Mohammad Qasqas, owner of a dealership in the free zone. 

Standing with dozens of traders at the protest, Qasqas told The Jordan Times that prices of used cars would jump by between 20 per cent and 25 per cent, which he said would reduce demand on such autos. 

In a bid to raise more revenue under a new deal with the International Monetary Fund, the government has decided to reduce tax exemptions on imported used cars and increase the ownership transfer fees of private vehicles.

Mutaz Mohammad, another car dealer, said the government decision is in favour of agencies of brand new cars, noting the prices of used motors may jump by JD1,000 to JD7,000 depending on the model of the car and size of the engine. 

“The market was suffering from a slowdown before the decision. Now things will get even worse,” he said. 

Qasqas claimed that over 25,000 people make a living from the auto trading industry in the free zone, including traders, technicians and employees at customs clearance companies. 

Jordan Free Zone Investors Commission  President Nabil Rumman told The Jordan Times previously that government revenues from the automobile sector range between JD1.3 million and JD1.5 million a day.

He noted that previously, 350 used cars were cleared from the free zone every day, “while now it doesn’t exceed a dozen”. 

Rumman said that traders have proposed that the government impose across-the-board fees on new and used vehicles that enter the domestic market, by charging 5 per cent in additional fees on all cars. 

Finance Minister Omar Malhas said recently that the government would not reverse tax hikes on used cars, but is open to considering alternative proposals.