Jordan Times
Sunday, August 22, 1999
Government reduces customs on cars, hikes gasoline prices
AMMAN (Petra) — The Cabinet on Saturday reduced customs and taxes on cars by an average of 67 per cent — a move that will cost the treasury around JD37 million, Prime Minister Abdur-Ra'uf S. Rawabdeh announced.
After a regular Cabinet session, Rawabdeh told the press that duties on cars with engine capacities below 1500 cubic centimetres (cc) will be reduced to 60 per cent from 105 per cent, 1500cc-200cc cars to 80 per cent from 136 per cent, 200cc-2500cc cars to 100 per cent from 200 per cent, and over-2500cc cars to 120 per cent.
Rawabdeh said that in order to compensate the treasury, the government will increase the price of gasoline by 20 fils per litre, or 400 fils per gallon, and will double the registration and licensing fees on new motor vehicles.
Fees on already registered and licensed cars will remain unchanged, according to the premier. He said around JD20 million of the JD 37 million lost to the treasury would be recouped by the gas price and registration and licensing fee hikes. “The remaining JD17 million will be handled by the treasury,” Rawabdeh said.
“These are serious and fundamental decisions, which we hope will positively reflect on citizens,” the prime minister told reporters. “The small increases in the fees and gasoline price would be enough for the government, which will not add any other charges as the treasury will deal with the rest.”
Rawabdeh said the Cabinet also decided to allow used cars manufactured seven years ago to enter Jordan, noting that “customs on such cars will be collected in accordance with a new method to make it easy on citizens.” The import of used cars had been restricted to cars five-year-old or newer.
“In order to cope with the side effects of the new gasoline price,” the Cabinet decided as of Sunday to amend the tariff of taxis within cities to 10 fils per 80 metres from 10 fils per 85 metres, and for taxies serving Queen Alia International Airport fees would be hiked to 210 fils per kilometre from 200 fils per kilometre.
Also, the tariff of small transportation vehicles carrying passengers around Jordan as well as those vehicles transporting passengers across Jordan's borders would be increased by 5 per cent.