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5.1: 1. If a package of cigarettes in Denmark costs 38 kroner, 31,310 kroner (with 7,6 kroner of that being VAT) of that price is taxes according to http://www.skat.dk/skat.aspx?oId=2041772&vId=0 2. It has, and it keeps getting higher. It's probably because the government wants to try and change the smoking habits of people, so there are less sick people in the country. Also, part of the reason is obviously also to make money. 3. Increase. 4. The government benefits from it, since they make more money. And if the customer stops buying it because of the price increase, they may benefit by living a helathier and longer life. The cigarette companies are obviously the big losers of the whole ordeal.