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Excise tax revenue grows only when the volume of the commodity sold grows, and does not respond to changes in prices. Consequently, states must continually raise the rates of excise taxes just to keep revenues up with inflation.[9] Indeed, had New Hampshire policymakers kept the 1990 cigarette tax rate of 25 cents per pack in place over the last twenty years, the state likely would have collected only about $40 million in tobacco tax revenue in FY 2009, more than $150 million below the actual level of collections that year and approximately $20 million below the inflation-adjusted level of collections for FY 1990

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Cigarette prices across India have surged sharply following the implementation of additional excise duty and a new tax structure on tobacco products that came into effect from February 1, pushing up retail prices across popular brands and categories