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The illicit cigarette trade in the EU has reached a worrying milestone, but it also presents an opportunity to reset our approach

The underlying reason for this pattern is that supply and demand are often inelastic in the short run, so that shifts in either demand or supply can cause a relatively greater change in prices

Tobacco taxes are classified as "excise" taxes, which are sales taxes imposed on different commodities at different rates, such as specific taxes on cigarettes, alcohol or fuel.[*] A general sales tax, in contrast, is applied uniformly across a wide range of goods

Second, there is a way to alleviate the more severe withdrawal

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