Nope, they don't care if no one or everyone uses it -- they get off on lording it over everyone.
In the end, it comes down to revenue.
This will drive more people to get their tobacco from cheaper sources instead of locally.
It will be an inconvenience, but a significant percentage of demand will simply shift to different sources for supply. Government revenue will not be getting the full amount that was projected, and eventually the tax will increase again.
All about the money, IMO.