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Either the tax is mainly a revenue source, which means they need to engage experts to work out the ideal [lower] rate that will capture the maximum revenue, or they need to keep a high excise rate and then reinvest the receipts into fighting the black market. Richard Holden, an economics professor at the University of NSWs business school, said it was clear the level of the excise rate had passed a tipping point and was now counterproductive

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Source document: SCENIHR (2010) Summary & Details: Media Consulta Tobacco Additives Tobacco products, most commonly cigarettes, have come to include more and more additives in recent decades