Goel (2007) tests the regression by using the sales of per-capita state cigarette as a dependent variable. Goel (2007) argues that any factors which reduce the number of per-capita state cigarette sales implies that those factors are the cause of smuggling. This assumption, which uses the reduction of sales as the measurement of smuggling, is generally used, for example in Saba and Randolphbeard, et al. (1995), and Goel (2004). In our study, we suppose that the shopping of customers via the traditional channels (shopping from the physical shops/ bricks and mortar shops) makes paying tax to the government unavoidable.