A large criminal market in illegal tobacco supply continues to exist despite legalisation; why would other drugs be any different?
The illegal market in smuggled tobacco is the direct result of taxation policy. If tobacco taxes were reduced smuggling would fall (where there is no tobacco tax there is no smuggling) but use would probably rise with falling prices. The Government has to balance these two factors, but at least with tobacco, because it is legal and regulated, they are in a position to intervene. Deciding what level to set the duties on drugs will be a difficult balance between setting the levels high enough to discourage heavy use but low enough to ensure that illegal sales are not profitable for organised criminals. Making these sorts of decisions is an impossible when drugs are subject only to supply and demand in an unregulated criminal market. It is also worth noting that most smuggled tobacco is at least legally produced in the first instance. Drug legalisation would not end illegal markets entirely but it would greatly reduce their profitability and scale. Even with tobacco, the majority of it is
Drug legalisation would not end illegal markets entirely but it would greatly reduce their profitability and scale, with huge benefits. For example, current estimates suggest globally 11.6% of the trade in cigarettes is illicit a figure which if replicated for all currently illegal drugs would mean wiping out the vast majority of the illegal drugs trade. Legal tobacco profits currently go to government and licensed businesses instead of criminals. The illegal market in smuggled tobacco is the direct result of taxation policy. If tobacco taxes were reduced smuggling would fall (where there is no tobacco tax there is no smuggling) but use would probably rise with falling prices. The Government has to balance these two factors, but at least with tobacco, because it is legal and regulated, they are in a position to intervene. Deciding what level to set the duties on drugs will be a difficult balance between setting the levels high enough to discourage heavy use but low enough to ensure tha
