Hand-Painted Figurine Actually "Smokes" Paper "Cigarettes"

"Hand Painted By Artisans In Italy" according to print on its base, this 2 1/2" high wooden figurine actually "smokes" the paper "cigarettes" shown in the images. I have 5 of the full-size cigarettes that have never been lit, 1 that is partially burnt and 2 that are about half gone.

I would like an appraisal of the item, as well as any information such as approximate age, etc.