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"We can't relax when we have 120,000 tobacco-related deaths every year," Mortler told reporters in Berlin

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Levying an excise tax in these situations can serve to recoup some of the cost of these externalities and internalize the cost of the externality to the purchase of the product.[11] The Pigouvian concept of internalizing externalities to correct inefficient market outcomes suggests that the size of the excise tax should be equal to the cost of the negative externality

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Accessed October 23, 2025