Cabinet exempts charging devices of electric cars from customs duties, sales tax

AMMAN — The Cabinet on Sunday decided to exempt charging devices of fully electric vehicles from customs duties and sales tax.

The decision, based on a recommendation by Finance Minister Umayya Toukan, will go into effect as of the date of its publication in the Official Gazette, the Jordan News Agency, Petra, reported. 

Previously, customs fees on electric car charging devices ranged between 5 and 30 per cent, depending on the estimated value of the device, Petra said, adding that the exemption was introduced to Article 14 of the 1998 Customs Law.

Based on another recommendation by Toukan, charging devices of electric cars were completely exempted from the sales tax.

The decision does not include hybrid cars that rely on electricity and traditional fuel, Petra noted. 

Currently, buyers of hybrid vehicles with engines smaller than 2,500cc pay 25 per cent of the value of the car as a special tax, while cars with larger engines are subject to a 55 per cent tax.

During the World Economic Forum on the Middle East and North Africa in May this year, held on the eastern shores of the Dead Sea, a memorandum of understanding was signed with manufacturers of electric cars — Tesla, BMW and Renault — to gradually adopt the use of electric vehicles in the public sector as an environment-friendly means of transport. 

In an initiative to support this move, Manaseer Group will offer supercharge services for electric vehicles at various gas stations throughout Jordan. 

Mercedes has also announced its intention to launch its electric car models in the Middle East, starting with Jordan.

By the end of this year, about 10 solar-powered electric car-charging stations are expected to be operating in Amman, according to the Jordan Competiveness Programme, which helped attract an investor to build the stations.