But the UK spends about £8bn treating smoking related illness and gets £12bn from excise duties and we have much higher rates on tobacco products. The UK taxes on cigarettes are high. About 77% of the price of a pack of 20 is tax.
> This is, according to the Treasury, equivalent to more than 2 pence on the basic rate of income tax or over 11 pence on the top rate of income tax. On a typical pack of 20 premium cigarettes the total tax burden of £6.17 ($9.66) ccounts for 77% of the recommended retail price (RRP) of £7.98 ($12.50)
http://www.the-tma.org.uk/policy-legislation/taxation/
The highest rate in the US is $6.16 (£3.19) (although most places in US have much lower tax rates).
http://www.tobaccofreekids.org/research/factsheets/pdf/0097....
When people smuggle cigarettes to sell illegally they don't care about minimum age laws, so you get children smoking counterfeit product:
http://news.bbc.co.uk/1/hi/england/2123054.stm
> Many are being bought by schoolchildren, according to trading standards officers in the borough of Camden, north London.
Counterfeit tobacco is a recurring problem in the UK.
http://www.bbc.co.uk/news/uk-england-sussex-16786358
It also introduces other "distortions", like fewer people smoking, especially kids.
http://www.tobaccofreekids.org/research/factsheets/pdf/0146....
But, y'know. Free market uber alles.