Cabinet Approves Amendments to Vehicle Licensing Fee by-law

Amman- The Cabinet approved a new by-law amending vehicle registration and licensing fees, introducing significant changes to align with global automotive industry trends. The amendments, applicable from January 1, 2025, will base licensing fees for newly registered vehicles on their pre-custom value rather than engine capacity.اضافة اعلان

The changes will not affect vehicles licensed by December 31, 2024, regardless of their type, value, or category, which will continue to follow the current licensing rules. The amendments aim to enhance fairness in fee calculations and address inconsistencies in the existing by-law.
Key Changes and Objectives

The revised by-law aligns licensing fees with global shifts in the automotive industry by considering the vehicle’s pre-custom value instead of engine capacity. The adjustments are intended to encourage energy-efficient and environmentally friendly vehicle ownership by significantly reducing fees for hybrid and electric vehicles.

Hybrid vehicles will benefit from a 25% reduction in licensing fees compared to gasoline vehicles of similar value, while electric vehicles will see a 50% reduction. These changes aim to promote the adoption of eco-friendly vehicles and support sustainability goals.

Electric vehicles with a pre-custom value of JD 10,000 or less will maintain their current annual licensing fee of JD 50, ensuring affordability for lower-value electric vehicles.

Additionally, the amendments establish a reduced cap on licensing fees for gasoline vehicles registered before January 1, 2025, limiting the maximum fee to JD 450.

According to the amendments, licensing fees for gasoline vehicles will vary based on their ppre-customvalue. Vehicles valued at JD 10,000 or less will incur a fee of JD 50, while those valued above JD 10,000 and below JD 25,000 will be charged JD 125.

Fees for vehicles valued above JD 25,000 and below JD 50,000 will amount to JD 300, and those valued above JD 50,000 and below JD 100,000 will have a fee of JD 500. Vehicles exceeding JD 100,000 in value will incur a fee of JD 800.

For hybrid vehicles, licensing fees will be JD 50 for vehicles valued at JD 10,000 or less, JD 100 for vehicles valued above JD 10,000 and below JD 25,000, JD 200 for those valued above JD 25,000 and below JD 50,000, and JD 400 for vehicles valued above JD 50,000 and below JD 100,000. Vehicles exceeding JD 100,000 will be charged JD 600.

As for electric vehicles, licensing fees will remain JD 50 for those valued at JD 10,000 or less, JD 70 for vehicles valued above JD 10,000 and below JD 25,000, JD 150 for those valued above JD 25,000 and below JD 50,000, JD 250 for vehicles valued above JD 50,000 and below JD 100,000, and JD 400 for vehicles exceeding JD 100,000 in value.

By the amended by-law, a 20% reduction in the annual licensing fees will apply to vehicles registered after January 1, 2025, once they reach five years of age from their manufacturing date. This adjustment is intended to account for the depreciation in the market value of vehicles over time, regardless of their type.