The higher levy on Cigarettes is expected to raise JD35 million in extra revenue for the Treasury, according to an official source who declined to estimate the amount of the higher tax on alcoholic drinks.
The government raised on Sunday the special tax by 100 fils on each packet of Cigarettes and by 10 per cent per liter on alcoholic beverages to beef up revenues for the state budget.
The source said Finance Minister Hamad Kasasbeh would reveal the total revenues of this new taxation decision in the coming days. Several attempts to obtain comments from Kasasbeh were not successful.
According to local cigarette dealers, the tax hike brings up the cost of a packet of foreign Cigarettes, such as Marlboro, to around JD1.6 while the local made one would cost JD1.35.
The Jordan Times could not check on the new price lists of alcoholic drinks because liquor shops are closed during the month of Ramadan
During its weekly meeting last week, the Cabinet endorsed a new regulation to increase the special tax on Cigarettes and alcoholic beverages, but published it Sunday in the Official Gazette.
Prior to the new taxation structure, the government collected a general sales tax of 16 per cent, and a special tax of 230 fils on Cigarettes. In addition, the government was receiving 102 per cent of the sales value of Cigarettes.
The government imposed a 900 fils special tax on each liter of beer and JD1.5 on every liter of other types of alcohol, in addition to the 16 per cent general sales tax.