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That would fuel a black market even more because now customers don't need to take any risk so more profit for those who do take the risk on the selling side.
And if they just do fines, it will become a cost of business. If they lock people up, then it's just another front in the ridiculous drug war that does more harm on its own than the drugs themselves do.
As much as I don't like smoking still being a thing, use is trending down on its own and people should have a right to choose what they do with their bodies, even if it fucks them up or they end up regretting it later. As a society, we've been fucking up our environment more than smoking ever has to the point where just existing in a large city is as bad as smoking because of the car exhaust, and that's for everyone, not just those who choose to drive or ride in cars.
Though I would be in favour of mandating that some majority portion of cigarette profits go to paying for the health treatments and would also be open to some kind of asterisk on healthcare coverage for those who live in places with public healthcare and choose to smoke, maybe requiring some kind of insurance policy to help pay for healthcare they might end up needing.