There have been negotiations on sharing income from tobacco tax. The first nations quickly understood that if taxes are charged on their tobacco products, sales would simply disappear.
Yes, tobacco may be part of their culture, but what you probably mean is the traditional use of tobacco, and not the commercial use, or cigarette sales.
I blame tobacco manufacturers for fueling greed in first nations by supplying them with products in the 1990s. Manufacturers succeeded when taxes were lowered in 1994, and they stopped supplying the contraband networks. Aboriginals understood that it was very easy to make cigarettes and that it costs almost nothing. They bought equipment to manufacture contraband cigarettes and started building factories on their reserves. It was then very simple to get them on the legal market.