Finance Ministry denies claim of hybrid cars tax decrease

AMMAN — The Finance Ministry on Wednesday dismissed reports circulated by some news and social media outlets of plans to lower taxes on hybrid cars.

In a statement carried by the Jordan News Agency, Petra, the ministry said that it had no intention to reverse the government›s decision regarding hybrid vehicles, under which a special tax of 55 per cent of the car price was imposed on hybrids.

Even with this 55 per cent tax, hybrids still have preferential price characteristics when compared to regular fuel cars, the statement added.

The ministry stressed that any decision related to taxes and fees goes through thorough studies that highlight their necessitating reasons, in addition to going through other studies following their implementation to ensure that such decisions can achieve their expected goals, Petra reported.  

Stakeholders said that car traders are waiting for the government›s “overdue” response on considering their proposals on hybrid cars taxes.

Hybrid car buyers used to pay a reduced special sales tax of 25 per cent of the vehicle’s price compared to 55 per cent for regular fuel cars.

The government decided to cancel the exemptions in 2012, but the decision had repeatedly been postponed since. This year, the government cancelled the exemptions and added another tax on all types of cars, calculated on the basis of the car’s weight and ranging between JD500 and JD1,500.