Australia is doing that with tobacco. It worked in that it has drastically cut smoking rates and deaths, but hasn't worked it has also made the market more lucrative for smugglers/organised crime. Illegal tobacco avoids the tax, so it can be sold at a lower price whilst still raking in the profits. Today 80% of tobacco in Australia is illegal, with a consequent 80% hit to tax revenue.
Australia is doing that with tobacco. It worked in that it has drastically cut smoking rates and deaths, but hasn't worked it has also made the market more lucrative for smugglers/organised crime. Illegal tobacco avoids the tax, so it can be sold at a lower price whilst still raking in the profits. Today 80% of tobacco in Australia is illegal, with a consequent 80% hit to tax revenue.
https://www.abc.net.au/news/2026-08-29/expensive-cigarettes-...