Jordanian Duty Free Markets reports 91% tobacco sales in 2022

Duty free
(Photo: Jordanian Duty Free Markets)
AMMAN — The Jordanian Duty Free Markets Company reported that 91 percent of its sales in 2022 were from tobacco, with a value of JD59 million, according to a local media outlet. اضافة اعلان

Official data released by the company revealed that the total sales of the Jordanian Duty Free Markets in 2022 amounted to about JD64.9 million, an increase of approximately 53 percent compared to 2021.

In 2021, the Cabinet announced that sales of tobacco and alcoholic beverages sold to travelers in the company's markets on border crossings would be subject to general and special taxes, as well as customs fees.

Company's net profit RisesThe company's net profit after taxes and allocations increased significantly to JD8.44 million, compared to a net profit of JD161,000 in 2021. The total profit of the company for 2022, after deducting the cost of sales, was about JD22.605 million, compared to JD10.846 million recorded in 2021.

The Jordanian Duty Free Markets Company obtained a renewal of its exclusive right in Jordan for 10 years starting from May 1, 2022. The company is committed to paying the General Treasury JD25 million, payable in annual installments, in exchange for granting the exclusive right.

Exemptions and allowancesIn addition to the exclusive rights, the company is entitled to a monthly service allowance of 13.55 percent and a monthly customs service allowance of 1.5 percent of the total monthly sales achieved in the duty-free markets, which are not subject to the same fees, taxes, and customs applied in the customs area as operating expenses, and an annual allowance of 20 percent of the net annual profits of the operational company for duty-free markets, starting from the 2022 fiscal year, including the profits of 2022.

According to the agreement, the group is exempted from income tax on its activity in the duty-free markets for a period of six years from the date of the agreement's entry into force, and 2022 is considered the first year of exemption.

The company's board of directors decided to distribute JD13.5 million as profits to shareholders, equivalent to 60 percent of the paid-up capital, for the profits of 2022.

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