Why don't you just keep putting the price of cigarettes up and force people to stop smoking, surely this would stop the issue?

Whist increasing the cost of cigarettes through higher taxes may be an effective strategy to stop some people smoking, it can also result in another negative outcome by encouraging more illicit trade or black market sales.  The illicit sale of filtered cigarettes in Australia is now estimated to have reached around 23% of total sales which is the highest rate ever seen in Australia.  Unfortunately this means people are still managing to purchase lower costs cigarettes, with no quality control or tax contributions being returned to the Australian Government.