Oman

Oman powers ahead with e-car revolution

100 per cent customs tax and registration fee exemption

 
With the rapid global expansion of the electric car market, there is a noticeable disparity between the growth of the industry and the rate at which people are adopting this transformative technology. It is imperative, therefore, to explore the numerous advantages of electric vehicles (EVs) and highlight what sets them apart from their fuel-powered counterparts.

EVs are environmentally friendly and contribute to reducing pollution resulting from fuel combustion. This type of car also saves money, as it only needs to be recharged with electricity, which costs little money compared to fuel.

Furthermore, to not need engine maintenance, oil change and other things with the various procedures that a fuel-powered car needs, so its operating cost is lower than that of conventional cars, whether in terms of operating expenses or changing service and periodic maintenance and its spare parts are not considered expensive compared to mechanical cars.

The electric car is quiet, as the engine does not make a disturbing sound, and it is safe because it contains airbags, and the electrical supply can be cut off at any time to protect passengers.

Studies and research revealed a significant growth in the size of the global market for electric cars, as a study conducted by Bloomberg Corporation showed that electric cars account for 3 per cent of car sales around the world, and it is expected to grow by up to 10 per cent in 2025, and this percentage will rise to 28 per cent by 2030, to 58 per cent in 2040.

To encourage the transition to carbon-free vehicles, the government of the Sultanate of Oman has adopted a set of facilities and incentives, including exempting electric cars by 100 per cent of customs tax and EV registration fees at the ROP. The value-added tax rate for electric cars and their special spare parts will be reduced to zero per cent, provided that these incentives will be applied for a period of three years, which can be extended, and will come into force from July 1.

The amount of savings in the cost of electric charging for electric cars is RO 1 ($2.6 US) or RO 2 ($5.19) that can suffice to charge the car for a distance between 300 and 500 kilometres.

Hilal al Ghaithi, General Director of Energy at the Services Regulatory Authority, Oman, stated in a statement that the goal is to switch to electric cars to raise the percentage of electric cars in the Sultanate of Oman to 35 per cent by 2030 and 65 per cent in 2040, and seek to install a sub-meter to charge cars in homes with the same residential electricity tariffs, and ultra-fast chargers will be installed at a rate of every 200 km on highways.

The Omani Public Services Regulatory Authority issued a regulation regulating electric vehicle charging activity in Oman, which came within the provisions of the law regulating and privatizing the electricity and water sector.

The regulation came as part of the Gulf state’s efforts to popularise electric cars to accelerate the abandonment of internal combustion engine cars, in support of Oman’s efforts to achieve carbon neutrality by the middle of the century, within Oman Vision 2040.

The regulation regulating electric car charging activity is added to a plan developed by the state to reduce emissions in the transportation sector, which includes three stages, the first stage of which aims to introduce seven thousand electric cars by 2030, at a rate of 35 per cent of new cars, and in the second stage, it aims the plan is to deploy 22,000 electric cars, 65 per cent of the new vehicles, by 2040, before the start of the third phase, which includes replacing all new cars with electric vehicles and hydrogen fuel cells, by 2050.

Within the three phases, the Sultanate of Oman aims to reduce emissions in the transport sector by 3 per cent by 2030, and this percentage will rise in the second phase to about 34 per cent in 2040 before reaching 100 per cent in the third phase by 2050.