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A superior design would be a tax based on volume, as volume is a better proxy for the harm associated with consumption (the negative externalityAn externality, in economic terms, is a side effect or consequence of an activity that is not reflected in the cost of that activity, and not primarily borne by those directly involved in said activity

While studies show that the proportion of UK smokers decreases year-on-year [v] , the most recent KPMG Report on Illicit Cigarette Consumption in Europe [vi] commissioned by Philip Morris International shows that UK illicit cigarette consumption, as a percentage of total cigarette consumption, accelerated by more than 20% from 2022 to 2023 [vii]