Jordan cuts taxes on e-cigarettes, heated tobacco

• Jordan is slashing special taxes on tobacco alternatives, including a 50% cut for heating devices and a major reduction for pre-filled e-cigarettes from 5 JOD to 1.5 JOD per milliliter.
• The new rates take effect Monday morning, with officials aiming to regulate the local nicotine market, discourage smuggling, and potentially incentivize a shift away from traditional combustible cigarettes.

The Jordanian government on Sunday amended the Special Tax Law of 2025 in the Official Gazette, introducing a package of tax reductions on tobacco alternatives that will take effect Monday morning.

The move is expected to have an immediate impact on retail prices.

Heated Tobacco Taxes Cut by Half

Under the new regulations, the government modified Article 3 of the original law to reduce the tax on tobacco heating devices.

The special tax on Heated Tobacco Products (HTP) has been lowered from 20,000 fils (20 JOD) to 10,000 fils (10 JOD) per device - a 50% reduction.

E-Cigarette and Liquid Taxes

The amendment also targets the electronic cigarette (vape) sector with deep cuts across hardware and consumables.

The most significant reduction applies to pre-filled electronic cigarettes, where the tax has been slashed from 5,000 (5 JOD) fils to 1,500 (1.5 JOD) fils per milliliter.

The tax on non-filled vape devices was reduced from 15,000 fils (15 JOD) to 10,000 (10 JOD) fils, while e-liquid refills saw a 50% decrease, dropping from 1,000 fils to 500 fils per milliliter.

Market Impact

While the government has not officially stated the reason for the cuts, such adjustments are often intended to regulate the market, curb the smuggling of untaxed products, or encourage a shift from traditional cigarettes to alternatives.