Higher tobacco taxes certainly reduce smoking, especially among kids, who are more price sensitive.
The issue we have in contraband today in Canada is because of illegal factories located on a handful of reserves in Ontario and Quebec. That's the source for the bulk of the contraband that we have. Western Canada is far away and there are much better control systems, so the contraband levels are much less prevalent.
Ontario and Quebec have the lowest tax rates, but the worst contraband. That's an indication that it's not related to tax levels but rather proximity to supply and the illicit factories.
There is potential for action. This increase is relatively small in the big context, but at the same time contraband prevention measures that are complementary could be implemented.