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If the combination of prevalence and cigarettes per day figures are to be believed, then Italian consumption in 1949 was about double the reported legal sales for that year.[ii] One possible explanation is over-reporting: there were still many Italians in 1949 who could not afford to smoke all the cigarettes they would have liked

Lovenheim, How Far to the Border?: The Extent and Impact of Cross-Border Casual Cigarette Smuggling, National Tax Journal 61:1 (March 2008), R

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It includes payments to retailers and wholesalers to reduce the price of e-cigarettes to consumers