The tobacco industry has a high profit because the cost of cigarettes is extremely low, but the price is very high. The cost of a pack of high-grade cigarettes is actually only a few cents, but the price has reached 10 US dollars. It can be said that a pack of high-grade cigarettes can make tobacco companies earn nearly 900% profits, which is unimaginable in other industries.
In addition, China Tobacco has made great contributions to the national fiscal revenue and economic development. In 20 19, the profit of China Tobacco was1205.6 billion, while the tax paid to the state increased by 17.7%, reaching177 billion, a record high.