Cigarette smokers are now having to dig deeper into their pockets to light up.

The island's leading importer of cigarettes, Carreras Limited, yesterday announced that the price of a cigarette will increase to $20, up from $15.

The suggested retail price for a 20-pack of the popular brands Craven 'A' and Matterhorn has been increased to $380, up from $280.

Smokers will have to pay more than $400 for a pack of Dunhill.

Tax hike

According to Carreras, the price increase reflects the sharp hike in the tax on cigarettes announced by Finance Minister Audley Shaw in his recent budget presentation.

Under the new tax structure, the stamp duty, excise duty and ad valorem tax on cigarettes have been eliminated.

However, the special consumption tax has more than doubled to increase the Government's take from smokers.

This will mean that importers will pay $6,000 for every 1,000 cigarettes they bring into the island, up from $2,300.