Lebanon’s tobacco body emerges as major source of state revenue — A model for other state institutions?

Report by Nada Andraos, English adaptation by Laetithia Harb

From the fields of southern Lebanon to the plains of the Bekaa Valley, Lebanese tobacco is making its way to global markets. 

At the same time, local factories under the Regie Libanaise de Tabacs et Tombacs (RLTT)—a government-run tobacco body—produce millions of cigarette packs for international brands, which are then re-exported, generating much-needed foreign currency for Lebanon’s treasury.

Over the past five years, the RLTT has emerged as a significant source of treasury funding, generating net profits and direct transfers to the state treasury totaling over $1 billion.

In 2020, despite Lebanon’s financial collapse, the entity maintained its pace, transferring around $200 million to the treasury. The following year, 2021, saw continued growth, with profits reaching approximately $220 million—despite deepening economic turmoil. 

In 2022, returns dropped to $93 million, a decline attributed to shifts in the market and fluctuations in the exchange rate.

Yet, 2023 marked a turning point. Despite the impact of regional conflict and its continued effects into 2024, the RLTT's revenues surged, resulting in $270 million in transfers to the treasury. 

By 2024, the entity achieved its highest performance to date, recording $402 million in net profits—all of which were transferred directly to the state, setting a new benchmark in its history.

This success is rooted in two parallel strategies. First, Lebanon significantly increased its exports of raw tobacco, which is now used by international brands due to its high quality. 

The second aspect involves manufacturing cigarettes for international brands and re-exporting them to countries across the Middle East and North Africa.

With revenues surpassing $1.1 billion over five years, the RLTT has demonstrated that the Lebanese state is capable of productive performance—when institutions are well-managed, guided by transparency, and driven by a clear and pragmatic economic vision.