This would lower tax revenue as an average, as demand would be lowered massively for the product (why risk being in a raid even in a 'legit' shop you can't know is actually legit; also price naturally increases with both taxes and the seizure of product reducing supply) and the resources spent investigating pointless things like this are resources that can't be spent on, you know, murder and looting which is common in war-torn countries. Even white ones.