duties on tobacco.

But Finance Minister Eugene Cox resisted the temptation to garner more money from the other "sin tax'' -- alcohol -- for fear it might affect tourism.

Mr. Cox announced that the duty on each cigarette will rise by 2.3 cents to ten cents, a move which will add $4.60 to the cost of a carton of 200 cigarettes.

He estimates the change, the first alteration to tobacco duty in four years, will net Government an extra $1.1 million each year.

William Pitt, managing director of the Island's only authorised cigarette importers, Pitt and Company, was philosophical about the changes.

He said his company will hold discussions with suppliers to decide "what the market can bear'', before deciding on whether to increase the cost of cigarettes.

"There has not been a Budget increase in cigarette duties for four years so this was much anticipated by us,'' said Mr. Pitt.

"The change from using net weight as the basis for duty to a flat rate of of ten cents a cigarette is progressive and much easier to understand and calculate.'' He said it was "too early to determine'' whether sales would be affected.

Drinks suppliers and bar owners were toasting Mr. Cox yesterday after he decided against increasing duty on alcohol.

Bar, resturant and nightclub owners said Mr. Cox had demonstrated that he was sensitive to the possible negative affects increased alcohol duties would have on the fragile tourist trade.

Tommy Gallagher, the chairman of the bars, restuarants and nighclub sector of the Chamber of Commerce, welcomed the decision to freeze duty on alcohol.

He said: "This shows Government is responsive to maintaining competitiveness in our tourism industry.

"Obviously there is already a high level of taxation and also anything we do to increase our costs is going to have a knock-on effect on our ability to be competitive.'' Michael Robinson, director of wine at Burrows Lightbourn, said: "We are all relieved. Sometimes you can tax something to the point when it causes sales to go down and Government in the long run doesn't make anything out of it.

"At the present time, our tax structure is pretty high so we were waiting with baited breath to see if they were going to change prices.''