William Difolco, from Macedonia, was issued with a fixed penalty notice - the first to be issued in the Kingdom - for smoking in his car on Thursday, July 6.
This has been an offence since March 26 when the smoking ban came into force.
Mr Difolco, who works for Billie's Cabs in the town, told The Gazette he was annoyed at being fined £50 because there weren't any passengers in his taxi at the time.
The 54-year-old local cabbie, who has been smoking for 30 years, said: "I was just drawing into the taxi rank at the bus station when an environmental health officer came over and that was it.
"I don't normally work during the week and was covering for someone who was off. There was no-one in the car at the time, the window was down and I had just lit up my cigarette.
"All the taxi drivers who smoke are annoyed about this because you can be sitting in your car for most of the day and there is nowhere to go to have a cigarette.
What are you supposed to do when it's pouring with rain? Where can you go? You can't smoke in bus shelters. Or if you are stuck in traffic for hours, if you are heading towards Edinburgh, what do you do then if you want a cigarette?
"People in private cars can smoke with their windows down so I don't see why taxi drivers can't.
"I was fined £50 and I won't be doing it again because the fine goes up to £200."
Read the full story in this week's Glenrothes Gazette, out now priced 32 pence.
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E-mail debbie.clarke@fifetoday.co.uk