Digital control of tobacco factories ‘most important tax reform project’

Jordan shifts to applying digital control of tobacco factories instead of direct control. (Photo: Shutterstock)
AMMAN — Minister of Finance Mohammad Ississ said Monday that the shift to applying digital control of tobacco factories instead of direct control is one of the most important tax reform projects, according to Jo24.اضافة اعلان

During his visit to the Income and Sales Tax Department, he said that the application of digital control “will enable the department to subject the targeted factories to digital supervision according to the latest globally applied systems, in order to stop traditional direct human control”.

“The use of this system will have a role in protecting the national industry and will guarantee consumers’ access to original products that are not counterfeit, fraudulent, or smuggled,” he said.

During the visit, the minister was briefed on the digital control system that the department will launch in order to raise the efficiency of the tax control systems of factories and companies producing cigarettes, beverages, and honey.

He was briefed about the objectives of the system and given an overview of the importance of implementing the system, its mechanism of action, the scope of the project and its stages.

Director-General of the Income and Sales Tax Department Hossam Abu Ali said that the application of the digital control system will enable the department to control the management and operations at the production sites (cigarette production factories).

He said that could be done using an integrated control software through which the cigarette production process is approved, starting from the beginning of the production process and ending with tracking it in the markets by placing distinctive electronic signs unique to all products in order to reduce the traditional direct control in factories.

Abu Ali said, that the system “will enable the department and the relevant regulatory authorities to monitor all types of cigarettes and tobacco, and at a later stage, the system will be applied to various other products to ensure that they are produced by licensed factories within the Kingdom”.

“The system will enable the regulatory authorities to discover all types of cigarettes that do not bear electronic marks for digital control, in a manner that enables the regulatory authorities to track the source of smoke and the products bearing these signs, and thus discover counterfeit or smuggled cigarettes and their source,” said Abu Ali, pointing out that the use of this system means the application of best practices in tax control.

It is used in developed countries and is applied for the first time in the Middle East by a government agency, he added. It also contributes to consistency with international practices in relation to the WHO protocol to combat illicit trade in tobacco.

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