Small surprise when you think about it. They lose a lot of money for every smoker that quits. Last I heard, it costs less than 1.50 to get a pack of cigarettes created, yet you are paying upwards of 5 dollars for each pack. All that is tax.
A couple of decades ago, when the tax actually hit, it was justified by saying that the tax would pay for the additional healthcare costs associated with smoking. Essentially, you were putting a down payment on your chemo-therapy. It made sense: Pay while you were healthy. However, while smokers agreed to this, the fact of the matter is that less than three percent of those taxes actually goes towards covering that. The rest is used for whatever the state wants to use it for. Hundreds of millions, if not billions of dollars, for absolutely nothing.
You think the mayors, senators, and governors want to give that up without a fight? Heck, no!
You think that insurers want to lose the increase in your premium? Nope!
You think that Big Pharm wants to lose your business? Absolutely not!
In fact, all three groups will arguably benefit from you staying addicted to nicotine. So they will continuously try to keep it under their thumbs. But when you can make your own juice, there isn't much they can do.