Reference: Fataawa al-Lajnah ad-Daa.imah lil-Buhooth al-‘Ilmiyyah wal-Iftaa. – Volume 13, Page 55, Question No.2 of Fatwa No.1407
Question: What is the ruling about trading in cigarettes and the like. Is it permissible to give in charity and perform Hajj or [other] noble acts using the profits of this trade?
Response: It is not permissible to trade in cigarettes and all that is haraam. This is because they are all evil and for that where there is a harmful effect on the body, soul and wealth. If someone wanted to give in charity and perform the Hajj or spend on noble causes then it is befitting to work out that which is good (halaal) from [such] wealth and then give in charity from it, or perform the Hajj or spend on noble causes. The generality of the saying of Allaah is:
{O you who believe! Spend of the good things which you have (legally) earned, and of that which We have produced from the earth for you, and do not aim at that which is bad to spend from it, (though) you would not accept it save if you close your eyes and tolerate therein. And know that Allaah is Rich (Free of all wants), and Worthy of all praise} [Soorah al-Baqarah, Aayah 267].
And his ﷺ saying:
«Certainly Allaah is good and does not accept [anything] except good», [reported by Ahmad, Muslim, at-Tirmidhee, ad-Daarimee, al-Bayhaqee].
And with Allaah lies all success and may Allaah send prayers and salutations upon our Prophet ﷺ and his family and his companions.