The price of a packet of 20 cigarettes is to rise by 40 cents with a pro-rata increase on other tobacco products.
This will increase the price of cigarettes to €10.
In addition, a 25 gram pouch of roll your own tobacco will increase by a further 20 cents.
The cost of the measures outlined in today's Budget will be €585m.
Revenue is also being raised through previously provided for changes in the betting duty and as a result of changes in VAT rules at EU level.
Collectively, the revenue raising measures in the Budget will contribute to over €167m in the coming year.
However, the minister said he would not be raising taxes on alcohol, petrol or diesel.
He said he would also not be increasing motor tax or VRT.
"I am not raising any other taxes because I am able to fund the costs of these reforms and incentives through improved tax revenues arising from economic growth and continued expenditure restraint," Minister Noonan said.