The head of the State Revenue Service, Baiba Shmite-Roke, believes that certain decisions regarding the regulation of the electronic cigarette market have been ill-considered and have created serious problems for the state. Speaking at a forum dedicated to combating smuggling, she stated that the bans on electronic cigarettes and flavored liquids have contributed to the expansion of the illegal market. According to her, before the introduction of restrictions, the turnover of these goods was under state control, and the gradual increase in excise taxes allowed for both budget replenishment and a reduction in consumption due to rising prices. However, after the bans were introduced, the situation changed. Shmite-Roke noted that the state not only lost part of its tax revenues but also faced a new problem — the increase in the turnover of illegal products of unknown origin. She expressed particular concern that smuggled electronic cigarettes are actively spreading among the youth. What is important to know: electronic cigarettes and flavored liquids are still legally sold in many European Union countries. Since there is no customs control of goods within the EU, legally purchased products can move freely between member states. According to the head of the State Revenue Service, after the introduction of the bans, control over the turnover of such products was transferred to the Health Inspectorate and the State Police. However, no additional resources for monitoring compliance with the restrictions were allocated. Shmite-Roke also emphasized that legal products undergo quality and safety control, whereas the origin of illegal goods is often impossible to verify. In her assessment, this creates additional health risks for consumers, as counterfeit products may contain dangerous or toxic substances. “Political decisions were made for the sake of loud headlines, and as a result, we stepped on a huge rake,” said Shmite-Roke. The head of the State Revenue Service noted that previously, smuggling was mainly associated with regular cigarettes, which were more often purchased by representatives of socially vulnerable groups. Today, the situation has changed, and illegal electronic cigarettes have become a mass product for a broader audience. The statements of the head of the State Revenue Service have once again brought the discussion about the effectiveness of prohibitive measures in combating the consumption of nicotine products to the forefront, raising the question of whether they lead to an increase in the shadow market instead of the expected decrease in demand.