Tax Cuts Slashed on Jordan’s Vehicle Imports: New Rates Take Effect June 29, 2025
In a bid to ease the financial burden on motorists and stimulate the automotive market, the Jordanian government has approved sweeping tax reductions on imported vehicles. Effective Sunday, June 29, 2025, the overall tax rate on gasoline-powered cars (including both general and special taxes) will drop from 71 percent to 51 percent—a 28 percent reduction.
Key Changes at a Glance
- Gasoline Vehicles: Total tax rate cut from 71 percent to 51 percent.
- Hybrid Vehicles: Total tax rate cut from 60 percent to 39 percent (a 35 percent reduction).
- Electric Vehicles: Special tax standardized at 27 percent across all categories, replacing the previous tiered system that had imposed rates of up to 55 percent.
Officials from the Customs Department will begin implementing the new tariff schedule on June 29. “These adjustments reflect our commitment to making vehicle ownership more accessible while encouraging a gradual shift toward cleaner technologies,” said a Ministry of Finance spokesperson.
By lowering duties on petrol and hybrid cars, the government aims to lure more competitive international models into the Jordanian market, potentially driving down sticker prices and boosting consumer choice. The uniform special tax on electric vehicles further underscores a broader strategy to promote sustainable transport options, in line with Jordan’s environmental targets.
Industry analysts predict that dealers may pass on part of the savings directly to buyers, invigorating showroom traffic and spurring import volumes in the second half of 2025. Consumers considering new purchases are advised to finalize order details with their dealerships ahead of the June 29 deadline to benefit from the revised rates.
This landmark policy marks one of the most significant automotive tax reforms in recent years, signaling a new era for vehicle affordability and green mobility in Jordan.