Experts: Restructuring the Vehicle Sector Stimulates the Economy and Promotes Safe, Sustainable Transport

Jordan News

21 hours ago

Experts in the renewable energy and petroleum sectors consider the government's decision to reduce overall taxes (both general and special) on vehicles and restructure the automotive sector as part of a broader series of economic and environmental reforms. These measures aim to stimulate the economy, ease financial burdens on citizens, and promote the shift toward sustainable modes of transportation. اضافة اعلان Speaking to the Jordan News Agency (Petra), they emphasized that the decision goes beyond economic benefits—it also reflects a strong environmental commitment and highlights the government's determination to position Jordan among the leading nations in electric mobility and renewable energy. Experts pointed out that the move encourages alternative modes of transport such as bicycles and electric scooters. This shift helps increase reliance on renewable energy sources, reduces dependency on traditional fuels, lowers the oil import bill, alleviates traffic congestion, and curbs pollution—particularly in major cities. Energy expert Hashem Aqal stressed that Jordan is taking a major step toward making vehicles more cost-effective and environmentally friendly. He noted that the cancellation of the progressive tax brackets on electric vehicles enhances tax equity and makes EVs more accessible to the middle class. Regarding the anticipated economic impact, Aqal stated that the tax amendments will lead to a notable drop in car prices in the local market. This could revitalize the automotive sector, which has suffered from stagnation due to rising prices, weakened purchasing power, and import restrictions. Aqal added that the decision will restore confidence in the market and is expected to boost vehicle sales significantly over the next three months, particularly in the hybrid and electric segments. Consumers are likely to notice savings of thousands of dinars on both new and used imported vehicles. Environmentally, the decision supports the official drive to reduce carbon emissions and limit air pollution, especially in major cities such as Amman, Zarqa, and Irbid. Aqal also expects the move to encourage more people to shift to electric bikes and scooters, especially with the recent announcement by the Greater Amman Municipality to designate dedicated lanes for these vehicles in key streets. He highlighted the importance of the decision in protecting citizens from unsafe vehicles by banning the import of cars with major accident damage (salvaged vehicles). This will push importers toward higher-quality cars, with growing demand expected for clean used vehicles meeting European and U.S. standards. The decision also eases the financial burden on citizens by offering more choices across various price segments, encouraging families to upgrade from older models or switch to electric vehicles to save on fuel and maintenance in the long run. Aqal noted that the monthly cost of operating an electric vehicle is roughly 10% of the cost for a gasoline-powered car—including fuel, oil, and routine maintenance. He described the move as one of the boldest government initiatives in years, sending a clear message that the government is acting to relieve burdens rather than merely increase revenues. Aqal predicted that the effects of this decision will begin to appear in the third quarter of this year—in terms of pricing, sales, and emission levels. The Arab Renewable Energy Commission also praised the government's well-thought-out decision to reduce customs duties on electric vehicles, describing it as a strategic step aligned with the Kingdom's shift toward clean energy and environmental sustainability. The Commission's Secretary-General, Eng. Mohammad Al-Taani, stated that the decision supports several national goals, most notably reducing reliance on conventional energy sources such as gasoline and diesel by more than 5% of total consumption over the next five years. He added that the decision could save the state treasury between 100 to 200 million dinars annually and will contribute to lowering carbon emissions. This supports Jordan's genuine efforts to reach carbon neutrality by 2050 in line with international commitments. Al-Taani emphasized that the move reflects Jordan's dedication to strengthening its global position in electric transportation and renewable energy. The Kingdom currently leads the Arab world in EV infrastructure and energy storage capacity.
He called on the private sector to seize this opportunity to expand into Arab and African markets, generating direct returns for the national economy and opening wide prospects for Jordanian technical talent to thrive and export knowledge abroad. (Petra)