The taxes collected through cigarette sales more than cover their costs on the healthcare system. Don’t act like governments actually care about the health of their citizens, either, it’s just about production maximization and writing policy to help their friends.
Ask yourself why full tobacco bans are becoming so popular now, instead of any other time in the past 50 years since we learned how harmful smoking is. It’s because big tobacco companies have pivoted and cornered the E-Cig market now, which is much more profitable than traditional cigarettes. The only difference is that small/independent farms can’t grow disposable vapes like they can with tobacco.