The recommendations are in a report by the Maori affairs select committee into its inquiry into the tobacco industry, after hearing hundreds of submissions over the last few months.
It will be tabled in Parliament today.
"If allowed to implement these recommendations, the Maori MPs who sit on this committee will take this country down the road of organised crime and will create an extremely dangerous environment for small, family-owned retailers," said Association of Community Retailers (ACR) tobacco spokesman, Richard Green.
The National Government should not allow the recommendations to be implemented as legislation, Mr Green said.
Its report has set a goal of halving the incidence of smoking over a decade and eventually becoming a "smokefree" nation, by banning tobacco displays in shops, only selling cigarettes and loose tobacco in plain packaging, and banning smoking in cars and public places.
The committee also wanted the Government to cut down the amount of tobacco imported into New Zealand and suggested tobacco companies should pay for addiction treatment such as nicotine patches.
The recommendations are not binding on the Government, and Prime Minister John Key has said it would be "a huge ask" to achieve a smokefree New Zealand by 2025 -- the goal set in a parliamentary report to be released today.
"It would be extremely difficult," Mr Key said in response to questions about making New Zealand smokefree by 2025.
The Government had already increased the price of tobacco since the last election, and more price rises are in the pipeline.
"We know that young people particularly are more likely to be put off smoking if the price of cigarettes rises," Mr Key said.
Retailers argued a ban on tobacco displays in retail outlets will increase the security risks in small retail shops and impose unnecessary costs on them to reconfigure their shops.
The retailers also said the Government's price rise of tobacco products in April this year led to increased violent robberies of small dairies and convenience stores.
And limiting the amount of tobacco imported into New Zealand will do nothing to reduce consumption or demand.
"Limiting supply will only open up our country to a huge black market and organised crime," Mr Green said. "Demand will be filled. If not legally, then it will be filled illegally. It's a matter of simple economics."
He suggested that if there were further price rises to fund tobacco cessation programmes the high market value on cigarettes could lead to further crime and retailers being killed in robberies.
"These recommendations will not create a smokefree country, but they will create an economy driven by organised crime and fear," Mr Green said.
The ACR has faced accusations of being a front for tobacco companies.
It has said no tobacco company has a say in its public and political strategy of the ACR.
"Having said that, we believe that retailers' concerns and those of New Zealand's tobacco manufacturers are aligned on the issue of banning displays," ACR said on its website.
