KRG waives fees for fully electric vehicles to boost adoption

ERBIL — The Kurdistan Regional Government has announced that it will waive both the initial registration and annual environmental levies for fully electric vehicles, a move designed to promote the adoption of electric cars and reduce environmental risks, the Ministry of Interior said.

Interior Minister Reber Ahmed issued Directive No. 2 of 2025, which takes effect on February 16. Under the directive, owners registering a fully electric vehicle for the first time will not be required to pay the standard registration fees or the annual environmental tax.

“This directive aligns with Prime Minister Masrour Barzani’s ongoing policies to reduce environmental threats and promote the use of electric vehicles,” the ministry stated.

The announcement follows a recent social media video in which a citizen claimed that, despite registering a fully electric Tesla, he was forced to pay a 500,000-dinar ($333) environmental fee. In the video, the citizen urged authorities to change the regulations, arguing that eco-friendly vehicles should not be burdened with such charges.

Under current KRG laws and directives, all imported vehicles and machinery must be registered within the region, with the registration process assigning a number based on the vehicle’s governorate of record. For privately owned cars, fees vary according to engine power—for example, vehicles with a 3-cylinder engine are charged 840,000 dinars ($560), those with a 4-cylinder engine 1,260,000 dinars ($840), a 5-cylinder engine 1,575,000 dinars ($1,050), and a 6-cylinder engine 2,100,000 dinars ($1,400).

The new policy may help increase the importation of fully electric vehicles, the uptake for which has been slow due to higher costs compared to hybrid or gasoline-powered cars. The limited number of charging stations in the region, with few public facilities available, has also hindered widespread adoption.