How Inexto’s Track & Trace solution enabled Jordan to secure tax revenues, ensure compliance, and protect consumers
Customer background
Jordan, a Middle Eastern nation with a population of over 11 million, relies – like many countries – on excise taxes from tobacco products as a key source of public revenue. For years, this revenue stream was threatened by illicit trade, which also undermined public health efforts to reduce tobacco use. Illicit trade makes tobacco products more accessible and affordable, thereby fueling the tobacco epidemic and compromising control policies.
To address this challenge, the Income and Sales Tax Department (ISTD) of the Ministry of Finance launched a national initiative to establish full visibility into the tobacco supply chain – from production to distribution and final sale. The objectives were clear: protect and increase tax revenue, meet international compliance obligations (e.g., the WHO Framework Convention on Tobacco Control – FCTC), and safeguard consumers from counterfeit and unregulated products.
Executive Summary
Scope:
- Industry: Tobacco
- Economic operators: 7
- Facilities: 6 manufacturing plants, 1 distribution center
- Production lines: 29 high-speed lines
- Coverage: Domestic production and exports
Solution: Track & Trace solution for tax collection
Results (2022-2024): 29% increase in legal tobacco production, from 643 million units in 2022 to over 830 million in 2024
Challenges
Before the project, the illicit tobacco trade posed a major economic and public health threat in Jordan. According to 2013 estimates from the World Health Organization (WHO), illicit products made up 41.1% of the cigarette market, with 16.6% being smuggled. This resulted in significant tax revenue losses and undermined the enforcement of public health policies.Â
As a Party to the WHO Protocol to Eliminate Illicit Trade in Tobacco Products since July 2024, Jordan faced an urgent need for a system capable of meeting global compliance standards and addressing volume control and tax compliance – all while ensuring seamless cooperation between government entities and private-sector manufacturers to cover both domestic production and export operations.Â
Solution
In October 2020, Inexto began implementing a comprehensive SaaS-based Track & Trace system tailored for government oversight of the tobacco industry. The system was designed to deliver real-time visibility into production, exports, and distribution, ensuring compliance with international standards and providing actionable intelligence for enforcement agencies.Â
At the core of the solution is a unique 2D identifier compliant with GS1 international coding standards that’s applied to each tobacco pack. These identifiers combine machine-readable codes with human-readable elements, enabling full product traceability while supporting field inspections by enforcement officers.Â
Key Technology Components:Â
- Serialization: Unique identifiers applied at every packaging level, ensuring full traceability of individual domestic products and all exported packs.Â
- Aggregation: Hierarchical linking from individual packs to cartons, master cases, and pallets (optional)Â
- EPCIS-compliant central database with exposed API (GS1 standard)Â
- Field inspection and UID verification modulesÂ
- Dynamic dashboard and reporting capabilitiesÂ
- Sophisticated analytical modules for data insightsÂ
Services Delivered by Inexto:Â
- Comprehensive project management and coordination with government agencies and economic operators.Â
- Development of technical requirements in collaboration with contracting authorities.Â
- Drafting of regulatory documentation and technical specifications for Economic Operators.Â
- Real-time deployment of government oversight components.Â
- Full system integration and testing protocols. Â
This robust architecture gave Jordan the ability to track and trace every legal tobacco product from production to point-of-sale, identify illicit activity, and secure tax revenues.
Result
The implementation of Inexto’s Track & Trace platform has transformed Jordan’s ability to oversee its tobacco industry, delivering measurable results in just the first few years of operation.Â
Between 2022 and 2024, data captured by the system show an increase in legal tobacco production, rising from 643 million units in 2022 to over 830 million units in 2024 – a 29% increase. Notably, this growth occurred even as one manufacturer ceased operations in 2024, signaling a shift toward genuine, tax-compliant production.Â
Jordan is now recognized as a regional leader in tobacco oversight using technology. This surge in system-recorded production demonstrates how robust digital tracking brings more products into the regulated economy, enhancing tax collection and market transparency. Jordan’s success validates WHO recommendations that investment in traceability systems is a cornerstone of effective tobacco control and fiscal policy.Â
0%
Increase in legal tobacco production
Operational Gains:
- Supply chain transparency and accountability
- Tax revenue protection and optimization
- International regulatory compliance
- Anti-counterfeiting and illicit trade prevention
- Real-time operational oversight capabilities
Jordan’s results prove that with the right technology, governance, and public-private collaboration, even entrenched illicit trade challenges can be tackled successfully, setting a benchmark for other nations in the region.
Have questions or ready to start your own success story?
This case study shows Inexto’s proven expertise in delivering large-scale Track & Trace solutions that exceed international standards while meeting unique governmental requirements.
Our collaborative approach between all stakeholders (government agencies, manufacturers, distributors, importers) ensures the successful delivery of complex regulatory technology projects.