The Action on Smoking and Health group also wants the Government to set ambitious targets to make tobacco use less prolific nationwide. At present, 19% people smoke – but the organisation wants this slashed to just 5% in the next 20 years.
Elsewhere in its report, ASH recommends that anti-smoking films are shown before TV shows and films which feature people smoking – especially if they are likely to be seen by children.
According to the group, tobacco firms in the UK generated profits of £1bn last year, and are responsible for the premature deaths of 80,000 people annually.
The report's chairman, Peter Kellner, added: "The NHS is facing an acute funding shortage and any serious strategy to address this must tackle the causes of preventable ill health.
"Investing in evidence-based measures that reduce smoking is highly cost effective; for example, stop smoking services have been shown to be one of the most cost-effective ways to improve people's health.
"Placing a levy on tobacco companies to fund such work is a win-win – saving both money and lives."
