A new tobacco tax hike introduced by the provincial government last week, which will dramatically increase the price of loose tobacco, has smokers outraged.

Under the new tax structure the price of a 200 gram carton of packaged cigarettes will rise by about $3, but the price for the same amount of loose tobacco will jump by about $23.

"It's going to cost me if I want to continue smoking my pipe, about $600 a year or so," said smoker Dave Scott.

The owner of Burlington on Whyte Tobacconists says he has been selling tobacco for years and can't believe the Alberta Government made the province's tobacco amongst the most expensive in the country.

"I can't begin to imagine why they would have such a huge discrepancy between the increase in loose tobacco and the increase in cigarettes," said tobacco store owner Chris Hansen.

Some smokers see the hike as a cash grab disguised as a health promotion.

"I think alcohol and tobacco products, they're the easy ones to raise taxes on and you don't get too much of a backlash," said smoker Dave Scott.

However, the tax hike is being applauded by anti-smoking advocates who welcome any increase to the price of the tobacco.

"Tobacco taxes are the single most effective means of reducing and preventing tobacco use, especially among young people," said anti-smoking advocate Les Hagen.