I would first like to clarify that I am neither against, nor for, smoking. I have some unhealthy habits myself, so shaming smokers would be somewhat hypocritical of me; inducing guilt by association is not my intention in sharing this here. I am simply interested in understanding policies and practices under Fascism.

This paper in particular unintentionally hampers the popular oversimplified image of the Third Reich with some notable observations: amongst the (German) Fascists there was no consensus concerning tobacco and, moreover, in practice the Third Reich was actually quite tolerant towards most of its citizens (especially men) smoking:

Although, as noted above, Germany was already a leader in tobacco control policies, the [Fascist] campaigns against smoking were much more wide ranging than previous campaigns. They comprised, primarily, an age limit of 18 years for smoking in public, advertising restrictions and smoking bans in some public places due to fire hazards and the dangers of ‘passive smoking’ (a term already coined by Lickint in 1939).

There was a strong focus on preventing smoking by women, linked closely to an idealized view of German wives and mothers. Thus, actions against smoking were often linked to similar actions against the wearing of cosmetics.

Some restrictions, e.g. the 18-year age limit for smoking (and drinking of spirits by those under 16 years) issued on 9 March 1940, went no further than comparable legislation in many other countries. Moreover, a 1943 police order aimed at protecting young people demonstrates considerable pragmatism by only prohibiting them from smoking in public but explicitly allowing them to buy tobacco products. This indicates a minimalist approach to enforcement, limited to what can be easily controlled. Furthermore, even when national laws were enacted, they were seldom enforced, such as the ban on smoking in trains.

Moreover, many possible actions were not taken. For example, there was no Reich-wide media campaign against smoking, and while the content of tobacco advertisements was restricted in December 1941, advertisements were not banned. Interestingly, tobacco advertising in the mass media (e.g. Das Schwarze Korps, Der Stürmer) only ceased in mid June 1942, apparently because the party no longer wished to draw attention to the developing shortage of consumer goods.

[…]

Richard Grunberger […] report[ed] how cigarette and cigar consumption doubled in the Reich between 1932 and 1938. He noted how the economic upturn associated with [Fascism] led to an ‘increased weakness’ for drinking, smoking and entertainment. This is confirmed by Proctor, who also ascribes the dramatic increase in tobacco consumption in this period to the post-1933 economic boom that ‘boosted the average German’s purchasing power’, accompanied by aggressive advertising campaigns by the tobacco industry, often employing athletic and sexual imagery, to encourage smoking.

[…]

Furthermore, the few national anti-smoking policies that were enacted were often poorly enforced. If the [NSDAP] at the highest levels had really wanted to stop people from smoking, there would have been anti-smoking campaigns originating at the top levels of the party or the Reich. However, while there were certainly a few local examples of persecution of smokers, Reich-wide campaigns cannot be identified in the official documents and party newspapers.

Further reading: Tobacco policies in Austria during the Third Reich, where regulation was even poorer. Quote:

In other parts of the Reich, the regulations on distribution of tobacco products were controlled by regional economic offices (Landeswirtschaftsamt). The situation in Austria was different, as decisions on ration levels were agreed between the Reich Finance Administration and the Austrian Tobacco Company. Their shared aim was to ensure that cigarettes, deemed ‘vitally important goods’, were available to the population. This reflected the status of the Austrian Tobacco Company as a state monopoly.

In April 1939, the company was incorporated as Austria Tabakwerke AG, with 100% of its shares owned by the state, a situation that persisted until privatisation in 1997. Although formally subordinate to the Finance Ministry, the company exerted a great influence on the Ministry.

(Emphasis added in all cases.)