All that's going to happen is people will produce and distribute cigarettes on their own. This will cause crime to increase and taxes will have to be raised on the public to fund a larger police force and build more prisons. In the end, taxpayers will enjoy footing $40k+ a year per inmate and policemen will spend more time cracking down on cigarette growers/dealers instead of hardened criminals.

Also, as other posters have mentioned, this will be just the beginning of new global taxes. Whatever happened to no taxation without representation?

If governments and other bureaucracies were really smart they'd make a law to ban bad behavior and make a law requiring us all to be rich. Problem solved.