Tobacco sales in Ireland fell by 7.5% in the first six months of this year, according to the cigarette manufacturer Gallaher.
The company, which has a 50% share of the Irish market, said around 260 million fewer cigarettes were sold between January and June compared to the same period last year.
It said the reduction was influenced by increases in the duty on tobacco and the workplace smoking ban introduced on March 29.
It said if the trend continued for the remainder of the year, tax returns from tobacco products would fall by €81m.