While it's true there is a witch that smokes a pipe, it is NEVER a focus of the movie, but, rather, it is a part of her character makeup.
Apparently American distributors have refused this movie because the teacher of the witch school smokes a pipe.
I must say that one witch that smokes a pipe does not bother me at all. In real life some of the grown-ups smoke, so why not in a film? Apart from that, these witches fly on broomsticks, cook potions, eat spiders... all of these are actually more dangerous than smoking if performed in real life.