Tobacco firms claim the ban could cost the island millions of pounds
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The States of Jersey have approved plans for a complete ban on smoking in enclosed public workplaces.
From 2 January, anyone caught smoking in pubs, clubs and restaurants or businesses failing to enforce the law, could face a fine of up to £5,000.
The island's health authorities believe around 200 islanders die each year from smoking-related illness.
Channel Islands Tobacco Importers Association opposed the decision claiming the ban will cost £44m a year.
Guernsey States introduced a similar smoking ban in July.