Jordan Customs Department Initiates New Vehicle Tax Cuts

Amman: Jordan Customs Department (JCD) embarked on implementing the Cabinet's decision on Sunday to lower the special tax rate on vehicles of all categories, as per the announced lists. The step comes as part of measures to enhance tax justice, streamline procedures, and stimulate investment in the sustainable transport sector.

According to Jordan News Agency, JCD Director General, Maj. Gen. Ahmad Akalik, stated that the new system reflects a reform approach aimed at eliminating previous distortions affecting tax and fee calculations. Akalik highlighted that the Cabinet's decision removed the overlap between general and special taxes and introduced unified rates based on the customs value of the vehicle.

Akalik explained that the former tax system, characterized by multiple levies, caused variations in tax rates, leading to confusion among importers and impacting the accuracy of customs revenues. The new system unifies rates and simplifies fees, enabling an accurate and transparent mechanism to set the tax due for each vehicle category.

Regarding electric vehicles, Akalik noted that the previous system had three different tax brackets, which have now been unified to facilitate import operations and support the government's initiative to promote the use of environmentally friendly vehicles. He emphasized that all customs data will be processed under the new system, making procedures clearer at the levy and specification level, thus providing relief to traders and reducing the margin of misinterpretation.

Akalik described the decision as a strategic step in reforming customs and tax policies. This move aligns with the government's efforts to stimulate the economy, support the transition to clean energy, and facilitate trade and import flow, which would positively impact citizens and the national economy.