The Income and Sales Tax Department emphasized the need for molasses tobacco traders in the Kingdom to comply with the prohibition of selling molasses tobacco in bulk in the local market starting from April 1, 2026, based on the foundations, regulations, and conditions governing the licensing and operation of molasses tobacco factories for the year 2025.
In a statement issued on Monday, the Department confirmed that the sale of molasses tobacco in the local market from that date onward will be exclusively through officially approved packaged containers in accordance with the conditions specified by the Income and Sales Tax Department and the General Customs Department, and that its circulation or sale in bulk will not be permitted thereafter.
The Department explained that this measure comes within the framework of regulating the manufacturing and circulation of molasses tobacco in the Kingdom, strengthening oversight in its various forms, and ensuring compliance with the applicable legislation and instructions.
The Department called on all molasses tobacco traders to take the necessary measures before the implementation date to ensure compliance with the specified regulations and instructions.
The Department further explained that, in order to control and regulate molasses tobacco manufacturing operations in the Kingdom, and to define the executive and legal dimensions, tax obligations, and requirements that must be met by molasses tobacco factories, as well as to regulate molasses tobacco sales in a manner that prevents its misuse, it has been decided to adopt foundations, regulations, and conditions for licensing and operating molasses tobacco factories for the year 2025. This decision is based on the provisions of paragraph (b) of Article 75 of the General Sales Tax Law of 1994 and its amendments.
The following are the foundations, regulations, and conditions:
First: Location: The licensed site for establishing a molasses tobacco factory must be within industrial cities or industrial zones where such activity is permitted, and must not be located in areas classified as agricultural or residential, or designated for activities other than industrial activity.
Second: Factory Area: The production-ready factory area must not be less than 1,000 square meters, which is considered sufficient to meet production requirements in accordance with public safety standards.
Third: Employees: The factory must employ no fewer than ten permanent Jordanian employees, and the employees must be registered with the Social Security Corporation in accordance with the law.
Fourth: Production: Molasses tobacco must be produced in accordance with the conditions, foundations, and standards issued by the Jordan Standards and Metrology Organization, at a minimum.
Fifth: Records and Documents: The factory must maintain computerized accounting records and the necessary documents and files for organizing financial entries and preparing the final financial statements in accordance with proper procedures, and these must be audited by a licensed auditor.
Sixth: The factory must comply with submitting monthly sales tax returns and general sales tax returns every two months, and must pay the due taxes on time without delay.
Seventh: The factory must be registered on systems that allow tax monitoring procedures and all other regulatory oversight procedures.
Eighth: The factory must have proper inventory systems for production supplies, inputs, and outputs, enabling tax auditing.
Ninth: Damaged Goods: These must be recorded in actual entries, must correspond with the official records, and may not be disposed of except in accordance with the laws and under direct supervision from the relevant authorities.
Tenth: The factory must comply with submitting guarantees and bonds requested by government entities from molasses tobacco factories in order to complete their procedures and ensure compliance with the legislation and the intended purpose.
Eleventh: The sale of molasses tobacco in bulk in the local market will not be permitted, and it must be sold in packaged containers according to the conditions specified by the Income and Sales Tax Department and the General Customs Department, effective April 1, 2026.
Twelfth: Existing molasses tobacco factories will be granted a grace period not exceeding one year to regularize their status in accordance with these foundations and regulations.
