The duty on a pack of 20 cigarettes will be increased by 50c as part of Budget 2026, however excise duty on alcohol is unchanged.
Excise duty on other tobacco products will be raised on a pro-rata basis, Minister for Finance Pascal Donohoe told the Dáil.
The Irish Heart Foundation expressed disappointment at the increase on cigarettes, which it said was insufficient to drive significant reductions in Irish smoking rates.
Director of Advocacy, Chris Macey, said tobacco tax is recognised globally as the most effective weapon to encourage smokers to quit and to discourage young people from taking up the habit.
"The Government had a target of getting smoking rates down to 5% by 2025 under the Tobacco Free Ireland policy – the actual rate of 17% puts us in the region of half a million smokers short of that objective," said Mr Macey.
"In our pre-Budget submission, the Irish Heart Foundation called for a €1.55 increase to bring the price of a pack to €20 – or €1 per cigarette. If we are serious about eliminating the toll of 12 deaths every day caused by smoking, a much tougher approach to tobacco taxes is unavoidable."
Smokers' group Forest noted that the latest tax hike will push the cost of a pack of 20 cigarettes of the most popular brands to almost €19 for the first time, and claimed that the increase would "drive even more smokers to the black market".
"Alternatively, many will buy their tobacco abroad where the cost is often significantly cheaper than at home.
"Punishing consumers, especially those from poorer backgrounds, by repeatedly raising the tax on tobacco is not only unfair, it's also counter-productive because it will hurt legitimate retailers in Ireland."
A tax of 50c per millilitre on nicotine-containing e-liquid for vapes was confirmed in September, and will come into effect on 1 November.
It will add €1 to the costs of a standard 2ml disposable vape and double the typical cost of a 10ml bottle of liquid for reusable vapes from €5 to €10.
Excise duties on alcohol have remained the same, despite the drinks industry calls for a 10% reduction on what is the second-highest duty on wine and and third highest on beer and spirits in the EU.
Watch: Minister Paschal Donohoe announces a 50c hike in the price of 20 cigarettes
Licensed Vintners Association (LVA) CEO Donall O'Keeffe said: "With Irish drinking consumption now at average European levels, this has long since passed being a measure aimed at encouraging moderation. It is the Government imposing a tax on people's socialising. In fact it is a tax upon a tax, with VAT also being charged."
Alcohol Action Ireland had called for an increase in excise duty of 15% and for increases in both duty and minimum unit pricing to be linked to inflation.
It said that the freeze "means this is the 12th year in succession that duties have not been touched, so their public health value continues to be eroded by inflation and are now at least 15% lower in real terms."
AAI CEO Dr Sheila Gilheany said: "Another sweetener to the alcohol industry by a government that loves to promote its public health credentials when it comes to tobacco but chooses to look the other way when it comes to alcohol, which is strange considering alcohol harm likely costs the state twice as much as tobacco."
Minister Donohoe also announced plans to legislate for a pool betting duty.
He said that while pool betting is currently restricted to just two entities, the new Gambling Regulatory Authority may become authorised in the area.
As this could incentivise betting operators to change their business structure in an attempt to avoid the existing betting duty, there was a need for a separate pool betting duty, he said.
Mr Donohoe said the department would engage with relevant stakeholders on the design and structure of this duty.
