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With nine containers seized in ten, Rowan says, [smugglers] still would not be losing money.[15] Canada had such tremendous problems with counterfeit and smuggled cigarettes that in 1994 the federal cigarette excise tax was cut from $16 to $11 per carton.[16] SCHIP Reauthorization in 2009 Was the Largest Federal Cigarette Excise Tax Increase in History The reauthorization of SCHIP in 2009 included the largest federal cigarette excise tax increase in history, bringing the tax to one of its highest levels ever in inflationInflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets