3 days ago
Jordan: Cabinet overhauls vehicle import rules, slashes taxes, bans damaged car imports
AMMAN — In a sweeping reform aimed at 'enhancing road safety, protecting consumers, and improving the quality of vehicles,' the Cabinet on Saturday approved a comprehensive overhaul of the vehicle sector, including significant tax cuts and tighter import regulations.
The decision, announced following a session on Saturday chaired by Prime Minister Jafar Hassan, introduces amendments to the 2025 Special Tax Bylaw, with immediate and long-term implications for car buyers, importers, and the wider automotive market.
Under the new measures, the government will reduce the total tax burden, both general and special, on various types of vehicles.
Taxes on gasoline-powered cars will drop from 71 per cent to 51 per cent, a reduction of 28 per cent, while hybrid vehicles will see taxes fall from 60 per cent to 39 per cent, marking a 35 per cent decrease.
Under the new decision, the special tax on electric vehicles (EVs) has been unified at a flat rate of 27 per cent, regardless of the car's value or category. This replaces the previous system that had planned increases of up to 55 per cent over the next three years.
Customs duties on scooters and motorcycles will be cut from 45 per cent to 33 per cent, a 26 per cent reduction.
Tougher import standards and salvage ban
The new decision also stipulates stricter regulations on vehicle imports to align with international safety and quality standards.
Under the new regulations, all imported passenger cars, including gasoline, hybrid, and electric models, must now comply with one of the recognised technical regulations from Europe, the United States, the Gulf Cooperation Council (GCC), or Saudi Arabia.
The new rules also prohibit the import of EVs that are more than three years old, including the year of customs clearance.
Furthermore, vehicles classified as 'salvage' or 'junk', including those damaged by fire, flooding, or deemed unrepairable in their country of origin, will no longer be allowed into Jordan.
The government says this is a key step towards improving vehicle quality and ensuring public safety.
The new import regulations will take effect on November 1, 2025. After that date, no vehicles will be cleared unless they meet the updated compliance and safety standards.
The Jordan Standards and Metrology Organisation previously announced that September 1, 2025, will be the final deadline for clearing EVs that had received past exemptions from conformity evaluation rules.
This move is expected to nullify approximately 50,000 existing exemptions granted to non-compliant EVs in recent years.
A Broader reform vision
Ministers say that the measures are part of a broader structural and fiscal reform plan designed to modernise Jordan's vehicle market, reduce financial burdens on citizens, and promote long-term sustainability.
'This package addresses longstanding distortions in the sector, improves consumer access to safer and more affordable vehicles, and supports environmental goals through reduced emissions and congestion,' the government said in a statement.
With this reform, the government aims to restore balance in the vehicle import system, improve regulatory oversight, and promote higher quality standards across the board, it said.
