Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

OD by xiaoyounan

VIEWS: 8 PAGES: 5

									Hybrid cars in Jordan

The citizens' perception: in Jordan, many Jordanian citizens are not really aware of the
environmental problem that is taking place, due to many reasons:

1-Because the media doesn’t focus on such things, so the level of awareness is low

2-Because the citizens are preoccupied with other things, like low income, high
unemployment rate & being in the middle of a warzone (the Israeli occupation of Palestine
to the west, the American invasion of Iraq to the east,& very unstable relationship between
Syria & the US up to the north)

3-lastly & most importantly, because Jordan is not a very technologically advanced country,
we do not produce heavy duty products & we have few factories, so we don’t really sense
the problem or see it with our own eyes

In other words, Jordan is not causing any pollution on a global scale, for instance, if we
compare the level of carbon dioxide emission between Jordan & other Arab countries we
can see the difference

While a petroleum filled country like Saudi Arabia emits 465,183thousand metric tons of
CO2 a year, & a country like Egypt emits around 588,611 thousand metric tons of CO2 a
year, here at Jordan , we only emit 01,,03 thousand metric tons of CO2 a year , so its
insignificant on a regional level, if we took bigger countries for example like China for
example, we see that it emits around 8,514,3,4 thousand metric tons of CO2 a year, it's the
number 1 country in polluting the earth, followed by USA , so we can clearly see that Jordan
is a "green" country, we are not a part of the problem , but we can play a small role to help
the planet.

Since , as mentioned earlier , Jordan is not an industrial country , we can come to realize that
cars are responsible of a big lump of the 01,,03 thousand metric tons of CO2 we produce
every year, so to help reduce this number we can think of greener environmental friendly
cars, the answer is using Hybrid Electric Cars.

In order to do so we should keep in mind many factors, the mentality of Jordanian citizens ,
the budget's ability to handle huge steps in facilitating the use of hybrid cars, there are many
examples of what other governments have done in order to encourage the purchase of
HEVs, several countries have introduced legislation for incentives and ecotaxes :

Canada

Residents of Ontario and Quebec in Canada can claim a rebate on the Provincial Retail Sales
Tax of up to $2,000 CDN on the purchase or lease of a hybrid electric vehicle. Ontario has a
green license plate for hybrid car users and was to announce a slew of benefits to go along
with it in 2008. Residents in British Columbia are eligible for a 100% reduction of sales tax up
to a maximum of $2,000 if the hybrid electric vehicle is purchased or leased before April 1,
2011 (extended in 2007/2008 budget from March 31, 2008 and expanded from a maximum
of only $1,000 from April 1, 2008 to March 31, 2009, at which point the concession was
scheduled to expire.) Prince Edward Island residents can claim rebates on the Provincial
Sales Tax of up to $3,000 CDN on the purchase or lease of any hybrid vehicles since March
30, 2004.

Japan

In 2009 the Japanese government implemented a set of policies and incentives that included
a scrappage program, tax breaks on hybrid vehicles and other low emission cars and trucks,
and a higher levy on gasoline that raised prices in the order of USD 4.50 per gallon. New
hybrid car sales for 2009 were almost triple those for 2008.

Netherlands

In the Netherlands, the Vehicle Registration Tax (VRT), payable when a car is sold to its first
buyer, can earn the owner of an HEV a discount up to €6,000.

New Zealand

In Christchurch, hybrid vehicles are entitled to an hour free parking in city council parking
buildings. Where those buildings already provide an hour free, hybrid vehicles are entitled to
an extra hour free.

Republic of Ireland

In the Republic of Ireland, a 50% reduction in VRT applies, which normally amounts to 25%
of the market value of a car.

Sweden

In Sweden there is an "Eco car" subsidy of SEK 10 000 (~ USD 1.600) cash payout to private
car owners. For fringe benefit cars there is a reduction of the benefit tax of 40% for EV's &
HEV's and 20% for other "Eco cars".

United Kingdom

Drivers of HEVs in the United Kingdom benefit from the lowest band of vehicle excise duty
(car tax), which is based on carbon dioxide emissions. In central London, these vehicles are
also exempt from the £8 daily London congestion charge.[145] Due to their low levels of
regulated emissions, the greenest cars are eligible for 100% discount under the current
system. To be eligible the car must be on the current Power Shift Register.[146] At present,
these include the cleanest LPG and natural gas cars and most hybrid-, battery- and fuel cell-
electric vehicles.
United States

Federal

Further information: Hybrid tax credit

The purchase of hybrid electric cars qualifies for a federal income tax credit up to $3,150 on
the purchaser's Federal income taxes. The tax credit is to be phased out two calendar
quarters after the manufacturer reaches 60,000 new cars sold in the following manner: it
will be reduced to 50% ($1700) if delivered in either the third or fourth quarter after the
threshold is reached, to 25% ($850) in the fifth and sixth quarters, and 0% thereafter.[147]

States and local

California's clear air vehicle sticker to allow access to HOV lanes in a Recharge It's plug-in
converted Prius.

         Certain states (e.g., New York, California, Virginia, and Florida) allow singly-occupied
          HEVs to enter the HOV lanes on the highway. Initially, the Federal Highway
          Administration ruled that this was a violation of federal statute[148] until August 10,
          2005 when George W. Bush signed the Transportation Equity Act of 2005 into law.
         Some states, e.g. California, exempt hybrid electric cars from the biennial smog
          inspection, which costs over $50 (as of 2004).
         The city of San Jose, California issued a free parking tag until 2007 when it became
          issued for a fee annually for hybrid electric cars that were purchased at a San Jose
          dealership. The qualified owners do not have to pay for parking in any city garage or
          road side parking meters.
         The city of Los Angeles, California offers free parking to all HEVs which started on 1
          October 2004. The experiment is an extension to an existing offer of free parking for
          all pure electrical vehicles.
         In October, 2005, the city of Baltimore, Maryland started to offer discount on
          monthly parking in the city parking lots, and is considering free meter parking for
          HEVs. On 3 November 2005, the Boston Globe reports that the city council of Boston
          is considering the same treatment for hybrid electric cars.
         Annual vehicle registration fees in the District of Columbia are half ($36) that paid
          for conventional vehicles ($72).




Germany

The German government and the country's carmakers have teamed for a major push
into electric mobility. Under a national strategy electric mobility, all sides pledged to
have 1 million electric cars cruise German highways by 2020.

The government is already funding electric mobility test projects with $700 million,
including programs to develop the charging station infrastructure and boost battery
technology, an area of expertise that is dominated by companies from Japan, Korea
and China.

The sustainable-mobility market is set to grow significantly, boosted by ambitious
national and European emissions reduction targets and an eagerness to reduce
dependency on imported oil.




Jordan

Jordan adopted a policy of removing customs and tax duties on hybrid cars as of the middle
of 2008, to encourage a cleaner environment through reduced emissions. Since customs
duties and taxes on vehicles amount to almost 100 per cent of the value of a car, citizens
were thus encouraged to purchase such cars and save on the energy bill and the
environment.

In the first 11 months of 2009, almost 4,000 cars entered the Kingdom. Within the first three
weeks of December last year, given the rumors that the government may retract the
exemption incentives, almost 900 new hybrids were imported in a rush to avoid a sudden
policy retraction. The panic continued amidst fears of policy reversal. The total number of
imported hybrid cars thus far is over 6,200.

The incentive, which was consistent with best practices in environmental protection, was
laudable at the time as a wise, environmentally friendly decision. In fact, social media groups
such as Urdunmubdi3.ning.com even started a campaign to increase awareness of the
benefits of hybrid cars.

Average monthly fuel savings amount to JD40 per car, a national saving of JD3 million, which
would have been spent on useless energy.

Given an average lifetime of 10 years per car in Jordan, this translates into JD30 million (this
is without doing a sophisticated economic analysis) for these cars alone. If the practice
spreads, the potential annual savings are immense, especially if fuel prices return to their
previously high figures, which is a possibility.

Savings on fuel consumption can be redirected at better consumption patterns or higher
saving rates (Jordan is among the lowest in the region in savings), which is the basis for
domestic investment and economic growth. Wasting energy is viewed as a “dead-weight
loss” in economics, a measure of lost efficiency in production or consumption.

Beyond the immediate impact on the environment in terms of newer cars, and lower gas
emissions - since these vehicles consume less gasoline they pollute less - there is less
pressure on the Jordanian dinar exchange rate as we import less oil, which means we would
need fewer reserves in the Central Bank and greater savings for Jordan; a shrinking trade
deficit, since we import 90 per cent of our energy needs; less outlay on road maintenance,
since cars are renewed more often; decreased demand on public transport networks, which
are not suitable anyway and require great capital expenditure; greater mobility of labor from
the regions of the poverty stricken regions of the Kingdom to work locations; lower inflation
rates; and higher employment as companies divert resources to other types of capital
expenditures that produce jobs.

Another indirect adverse effect is the impact on domestic and foreign direct investment,
which shies away from countries where policy decisions are changed unilaterally and where
the legislative environment witnesses sudden policy shifts.

Clearly, the benefits far outweigh the cost to the government from the loss of revenues from
customs, which must have been behind the decision to remove the tax incentive.

Why was the decision contemplated? Budgetary shortfalls must be the answer.

The taxman dictated the policy, which underscores a policy-making deficit in the country
that is underpinned by two principles: lack of participation by the public in policymaking and
the dominance of operational over strategic management of the economy. Both are
dangerous and cause the country to trade the welfare and development of future
generations for current manageability of the economy.

								
To top