Amman, June 29 (Petra) – The Cabinet has approved an amended Special Tax Bylaw for 2025. This revision introduces significant reductions to the total general and special taxes on vehicles, forming part of a comprehensive structural reform package designed to substantially alleviate costs for citizens.

The decision, announced during a Cabinet meeting on Saturday, enacts considerable cuts to overall general and special taxes, as well as customs duties on vehicles. Crucially, it comprehensively addresses existing financial and structural distortions within the automotive sector.

By lowering the cost of vehicle ownership, the new bylaw expands consumer choice, aligning with a series of ongoing government initiatives aimed at reducing citizen expenses and enhancing their quality of life.

Key Tax Adjustments and Reductions:
-- Gasoline Vehicles: The total aggregate tax imposed on gasoline-powered vehicles will be reduced from 71% to 51%, representing a substantial 28% reduction.

-- Hybrid (HEV) Vehicles: Total aggregate taxes on hybrid vehicles will see a significant cut from 60% to 39%, marking a 35% reduction.

-- Electric Vehicles (EVs): The special tax on electric vehicles will be standardized and fixed at 27% across all categories, irrespective of the vehicle's value or classification. This move effectively abolishes the previous progressive special tax bill, which had projected tax increases up to 55% over three years, as announced late last year.

-- Scooters and Motorcycles: Customs duties on scooters and motorcycles will be lowered from 45% to 33%, a 26% reduction. This measure aims to encourage their use, decrease reliance on fossil fuels, and contribute to mitigating traffic congestion and environmental emissions.

The Customs Department will commence implementing this decision starting tomorrow morning, Sunday, June 29, 2025.

//Petra// AA

28/06/2025 18:06:06