Tax increase on customs-cleared hybrid cars will not result in price hike — sector representative

AMMAN — The prices of hybrid cars, which have been recently cleared, will not be raised, said Jihad Abu Nasser, representative of the automobile sector at the Jordan Free Zone Investor Commission on Sunday.

In a statement to Al Rai Arabic daily, Abu Nasser expressed his “surprise” at the government's failure to reverse the decision to increase taxes on hybrid cars by 10 to 55 per cent, despite the distress of traders and the opposition of the Energy Committee at the Lower House.

With 15 days to repay customs fees, merchants will resort to lowering prices to be able to sell any hybrid car, Abu Nasser said, pointing out that the selling price is dictated by supply and demand.

He added that fees increase will be on cars that will be subject to customs based on the new tax percentage.

Chairman of Jordan Free Zones Investment Commission Mohammad Bustanji pointed to a sharp decline in the clearance of hybrid cars amounting to 70 per cent.

He attributed this to raising the tax on these cars by 10 per cent and the increase in car prices from country of origin and high freight charges.