So... your link agrees with what jogjayr is saying? It's just saying that a trivial level of taxes on a relatively cheap item won't do anything, which I don't think surprises anyone.

Australia has near-punitive levels of tax on cigarettes, and smoking levels have dropped considerable over the past few decades. About 50% of the price of a pack of cigarettes is tax here, which marries up with your quote. Taxes aren't the only thing making smoking rates drop here, but among the smokers I know, most of them have reduced their rates simply due to the expense.

http://www.smh.com.au/federal-politics/political-news/a-doll...