Smokers buying cigarettes this morning are paying extra. As of midnight last night, the price for a pack of 20 increased by 40 cent.
The Dáil voted in favour of it by 121 to 22, with some TDs dubbing it "the Nidge tax".
Independent Deputy Finian McGrath claims the price hike will provide criminals with a market to sell smuggled cigarettes.
The Irish Cancer Society (ICS) has welcomed the move - saying the hike will be a disincentive for children to start smoking, and will encourage current smokers to quit.
Head of advocacy with the ICS, Kathleen O'Meara, said: "The Irish Cancer Society is delighted that cigarettes now cost more than €10. It sends a strong signal to the tobacco industry that the government is serious about reaching its target of a smoke free Ireland by 2025."
"The price hike will encourage people to stop smoking and ultimately save lives," she added.
But the smokers' group, Forest Éireann, has called the move "daylight robbery", with spokesman John Mallon adding: "It discriminates against the elderly, the low paid and the unemployed."
"It also discriminates against law-abiding smokers who have resisted the very strong temptation to buy cigarettes on the black market," he added.
The changes will also see the same rise in the cost of other tobacco products.
These people in Dublin gave a mixed reaction to the increase.
For anything further on the Budget, you can check out our coverage on Newstalk.com:
#BUDGET2015: The main points you need to know
Michael Noonan's speech in full
Brendan Howlin's speech in full
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