Don't believe it? Go to a town hall meeting some day when the politicians are threatening to put tolls on the roads. Their complaint is almost always that since people are driving less and using more efficient cars the revenue from the gas tax is down. It's the same principle at work.
You nailed it.
I agree it’s all about the revenue. But smoking also helps sustain the health care system. I have many patients with COPD, lung cancer, and heart disease who require my services specifically because they smoke.