Smokers will pay an extra 12.5 per cent for a pack of their favoured brand from this week.
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The first of four tobacco tax increases took affect on December 1, bringing the cost of the average pack of cigarettes to more than $20 by 2016.
Cancer Council NSW has supported the increase, in the hope that as cigarettes become more expensive, more people will give them up.
Cancer Council research released earlier this year found almost two-thirds of smokers would try to quit if the price of tobacco increased by 15 per cent.
The average pack-a-day smoker stands to save more than $7000 a year if they give up smoking.
Almost half of respondents predicted they would be likely to smoke fewer cigarettes if a tax increase was introduced.
However, council's community engagement manager for the western region, Justin Cantelo said there was concern that smokers from lower socio-economic backgrounds tended to wear the price rise and let some of the basic necessities slide.
The average pack-a-day smoker stands to save more than $7000 a year if they give up smoking.
Mr Cantelo said smokers who want to stop should seek advice from organisations like Quitline or their doctor.