Like in many other industrial areas, the policy of Iranian government in tobacco industry revolves around encouragement of local production. This policy is more pronounced in tobacco industry because during the recent years a considerable amount of tax revenues have been lost due to smuggling. On the other hand, Iranian cigarette production was not able to compete with the international moguls of the industry. Due to the fact that consumers preferred well-known international brands, importation (both legal and illegal) of cigarettes was in high demand. This led to a crippling of the cigarette industry and also a huge loss of tax and monopoly incomes for the government.