The Sultanate of Oman has recently announced a number of customs and tax incentives and facilities to encourage citizens and residents to transition to emission-free electric cars, in order to support zero neutrality in the transportation sector.
Starting July 1, 2023, electric cars will be exempt from customs tax by 100%, as well as electric vehicle registration fees at the Royal Oman Police. Additionally, the value-added tax rate for electric cars and their spare parts will be set at 0%. These incentives will be applicable for a period of three years and can be extended.
By reducing the initial cost of owning an electric car, these incentives are expected to encourage folks to acquire electric vehicles, introducing diversity to the Omani market’s vehicle types and prices, and supporting the electric vehicle sector.
To regulate the activity of charging electric vehicles and the technical requirements for connecting charging stations and devices to the network, the Sultanate recently issued a bylaw. It also allowed private investment in Oman for charging points by adopting a tariff for electric vehicle charging points.
Additionally, the government has identified the number of electric cars that must be purchased as part of governmental plans to replace traditional cars. Oman is adopting and applying standard specifications for the technical requirements of electric vehicles.
According to a recent BloombergNEF report, electric vehicle sales are booming across regions, with global cumulative sales to exceed 500 million by 2040, an increase of 500% from 2020.
In the Middle East and North Africa, electric vehicle sales show the greatest potential for growth. Incentives like those announced by the Sultanate of Oman are essential to promoting the use of electric cars, as they may result in the reduction of greenhouse gas emissions while also saving drivers money on gas and reducing noise pollution.
Governments worldwide recognize the need to transition to electric cars in order to reduce carbon emissions and protect the environment, and Oman has taken another significant step in that direction. By adopting policies and programs that encourage the purchase of electric cars, the Sultanate is not only supporting zero emissions goals but also paves the way for an eco-friendly, sustainable future.
