A packet of 20 cigarettes will increase by 50 cent from midnight tonight the Minister for Finance Brian Cowen announced in the Budget.
A packet of 20 cigarettes will increase by 50 cent from midnight.
The increased excise in cigarettes is expected to raise €112 million for the Exchequer per annum. Mr Cowen also announced that there would be future restrictions on the sale of pack sizes of less than 20, adding that these would be "health promotion measures".
He also urged trade unions not to cite the increase in cigarettes as an inflationary measure during future pay bargaining.
The other so called 'old reliable', alcohol, remained untouched by the 2007 Budget.
The Minister also announced that Vehicle Registration Tax (VRT) would be changed from 2008 in an effort to reduce carbon dioxide emissions.
Mr Cowen said people who own vehicles with higher emissions will pay more VRT.
"We want to motivate the public to buy cleaner cars," he said in his speech. Excise on kerosene and home heating oil will be abolished from January while there was no increase in excise on petrol or diesel.
The employers body, Ibec, had urged the Minister not to increase excise on alcohol or fuel to ensure the budget id not add to inflation.
Responding to the increase in the price of cigarettes, Luke Clancy, ASH Ireland, argued a 50 cent rise is not enough.
"If the Government is serious about achieving a tobacco-free society then the 'price nettle' must be grasped," he said.
The Irish Heart Foundation said it welcomed the "small increase of 50 cent on a pack of 20 cigarettes announced in today's budget. However, the Foundation strongly regrets that the Minister did not add €2 as it had recommended".