That's one reason why tobacco is taxed heavily and why some advocate taxing sugary drinks. In the case of tobacco further effort is devoted to designing and enforcing other constraints, such as cabinets to hide the tobacco products in-store and plain packaging rules.
Here's another possibility: pass a law to create a statutory monopoly for tobacco products and then auction off the right to be the monopolist for a defined period of time (eg 5 - 10 years). I see it playing out like this.
- Since only one firm is allowed to sell tobacco it will set monopoly prices which will burn off some demand by themselves.
- Taxes can still be imposed on top of the monopoly prices, ideally Pigouvian taxes aimed at roughly pricing the externalities associated with smoking.
- A large chunk of the monopoly profit will be captured by the state as tobacco companies compete to win the monopoly rights.