"It definitely won't be a positive impact," Centro Goulburn's Free-Choice Tobacconist manager Dipak Kumar said, who started his business eight months ago.

"I believe, especially for small retailers who have invested their life savings into a business, it will have a huge impact on their investment.

"The government should look into compensation."

If passed, the laws will force tobacconists to remove all products visible from the stores' exteriors within a year, a move that the Government believes will significantly impact the sale of tobacco, which currently kills 15,000 Australians each year according to the NSW Heart Foundation.

"I don't care if people think it's over the top," NSW Premier Morris Iemma told News.com.au last Wednesday.

"When it comes to smoking, we'll always err on the side of caution."

These statements were supported by a senior Cabinet minister who stated "if the industry was so opposed to it, you can be sure you are doing the right thing."

The proposal poses a huge challenge for Mr Kumar's open front store.

"If we're going to start to put everything away, the first thing is the landlord's going to get pretty angry cause it's going to look like a shop has nothing displayed," Mr Kumar said.

"It's going to have a negative impact on the centre as well.

"I think it's taking away the right of the consumer to make an informed decision."

The laws will give tobacconists four years to remove all displays completely.

"If these go through, I don't know where we'll stand as a retailer," Mr Kumar said.

The bill, which will be introduced in the spring session of Parliament, will also see smoking banned within cars carrying children under the age of 16, with $250 on-the-spot fines.