Sounds like a money spinner and not really solving the litter problem. I used to smoke and always kept my butts and placed them in the bin which was an old army habit. If you are a consumer of any product it is your responsibility to make sure you leave the place as you found it.
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It's definitely a money spinner. They make the "maximum fine" so high so that officials can negotiate with an offender and get them to pay a bribe to not get in trouble. This is par for the course here.
I really believe that the world just generally speaking would be a much better place if people just followed this one simple rule.