The price of a packet of 20 cigarettes is to go up by 50c from midnight.
Minister Paschal Donohoe made the announcement in his Budget speech today.
"This will bring the price of cigarettes in the most popular price category to €13.50," Mr Donohoe said.
However, retailers in Ireland hit out at the increase saying it will only benefit smugglers and duty-free shops.
"Retailers are at a loss to understand the Government’s decision to impose another excise increase of 50c in today’s Budget," Retailers Against Smuggling’s (RAS) National Spokesperson Benny Gilsenan said.
“In the backdrop of a potential no-deal Brexit, the return of a Duty Free regime between Ireland and the UK and an ever fluctuating Sterling, all of which will lead to further growth in the illicit trade, tax compliant small and medium sized retailers are once again penalised while criminals and Airport Duty Frees reap the benefits as the cost of tobacco products increase yet again"