Regie contributed around $480 million in net revenues to state treasury in 2025
• Regie paid $147 million as final installment of the year’s dues
• Tobacco crop production expected to drop to less than 40% of last year’s levels due to war Finance Minister Yassine Jaber held a meeting with the Regie Libanaise des Tabacs et Tombacs, headed by Chairman and General Manager Nassif Seklaoui and attended by members of the Board of Directors and the tutelage authority.
T
he meeting focused on the impact of the Israeli attacks in southern Lebanon on tobacco cultivation, as well as the losses sustained by cultivated lands and farmers. It also covered manufacturing and production, imports and exports, and various operational aspects, especially given the proximity of the Regie’s headquarters to targeted areas in Beirut’s southern suburbs, and addressed the institution’s financial situation.
After the meeting, Seklaoui made the following statement:
“The Regie’s Board of Directors and the tutelage authority met with the finance minister and reviewed all aspects relating to the sector.
Unfortunately, the agricultural sector might face a disaster in terms of tobacco crop yields. On the human level, 50 tobacco farmers were martyred in southern Lebanon. As for cultivation and crops, farmers were able to relocate their crops last year, moving them from areas under constant aggression to less targeted areas.
Today, however, no area in southern Lebanon can be considered safer than another. The first, second and third lines, where tobacco cultivation is concentrated, are all subjected to Israeli attacks. As a result, it has become almost impossible for farmers to relocate their crops.
Accordingly, the Regie has set up tobacco nurseries on land it owns and placed them at the disposal of farmers. It has also provided financial facilities to all farmers.
Meanwhile, in the regions that were not directly targeted, such as Rmeish, Ain Ibl and Dibil, tobacco cultivation will not be at the same level as last year due to the siege imposed on these areas. As you know, the attacks on the town of Dibil did not spare solar energy installations, depriving agricultural land of irrigation water. This raises concerns about the situation in towns such as Aitaroun, Aita al-Shaab, Kfar Kila, Houla, Bint Jbeil and others, most of which have suffered extensive destruction.
Although some farmers remain in Aitit, Deir Aames and Burj al-Shemali, and around 60% of Rmeish’s farmers are still cultivating their lands, we do not expect to receive or purchase a large number of tobacco crops. At best, production may not exceed 30% of last year’s levels.
Regarding manufacturing, our factory, located just a few meters from Beirut’s southern suburbs, operates 16 production lines and employs hundreds of engineers, technicians and workers who continued carrying out their duties under difficult and high-risk security conditions.
The institution’s support in ensuring production continuity was instrumental, as it has allowed them to prevent disruptions, limiting the decline in production to 15%.
On the administrative level, due to the risks associated with the war, we decided to keep only 20% of employees on site, most of them from the sales, commercial, accounting and administrative departments, following the displacement of dozens of Regie employees’ families.
Despite all this, the Regie’s financial situation remains sound, and the farmers are managing as well. We continue to provide them with assistance and agricultural supplies, although such support, in legal terms, cannot fully alleviate their suffering or compensate for the loss of their crops.
On the financial level, following the completion of the budget process, the profits generated in 2025 amounted to $480 million in net revenues from the tobacco sector, which were transferred to the state treasury through the Finance Ministry. This amount includes $300 million in net profits and $180 million in VAT and customs duties payable to the Treasury.
Today, in light of the recession affecting the national economy as a whole, we are facing a major challenge in ensuring these revenues for the current year. The Regie has never operated with “losses” in mind at any stage; it has always sought progress and profitability. However, we must take the general situation into account.