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Theres some kind of illegal market that develops. Both Chicago and New York City where cigarette taxes are higher than average have introduced programs to clamp down on black-market sellers

The market share for capsule cigarettes increased between 2014 and 2017 in 57 of the 67 countries where they are sold, and in 2017 were the fastest growing segment in combustible tobacco 10

The UK government applies both a specific duty and an ad valorem duty to tobacco products, with the ad valorem rate being an addition to the specific duty and VAT

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