Out-of-court settlements relating to the evasion of excise duty will increase from €250 to a minimum of €1,500, the Customs Department said.

Court penalties will increase from €500 to a minimum of €3,500 up to a maximum of €25,000 in the case of seizure and from €600 to a minimum of €4,000 up to a maximum of €25,000 in the case of tax evasion, it said in a statement this morning.

This, it said, was being done in a bid to deter law breakers.

Customs pointed out that the importation, supply and consumption of contraband cigarettes drastically and negatively affected the country but the current fines were proving to be ineffective.

Customs and the police, it said, would also be increasing their enforcement measures through additional resources.

It warned law-breakers that their trade would become much harsher from now on.