The author is right. High tobacco taxes do not lower smoking prevalence, they only shift the legal tobacco market to the illicit one. Pr. Robert Molimard (prominent tobacco expert) has this to say on the issue:
''For decades, we have been served a lie, with no tolerance for any criticism or challenge, namely: that the only effective method to reduce smoking prevalence is to increase the price of cigarettes. But since it does not work, they allege that it is because the increases are neither high enough nor frequent enough! But just as with their tactic of stigmatization of smokers, the high-price policy does not work.''
Look at figure 3 and read the whole article at : http://www.cagecanada.blogspot.ca/2010/12/beliefs-man