Excise duty on tobacco products is being raised by between three and four per cent, Finance Minister Tonio Fenech announced in the Budget speech today.

He added that the the tax on local beer will increase by slightly less than €0.01on a 25cl bottle, and 13 per cent on spirits.

He said that all revenue from this measure will be directed to the health bill.

The minister stressed that in contrast to other countries which were making spending cuts even in health and social services, the government was investing more, despite the difficult economic environment.