There is a push in Tasmania to raise the smoking age from 18 to 21, with Windermere independent MLC Ivan Dean to introduce the Tobacco 21 bill in the upper house next year.

READ MORE: Andrew 'Twiggy' Forrest visits Tasmania to lobby to increase smoking age

Tasmanian Small Business Council chief executive said Mr Forrest's suggestion he would personally compensate small business for lost trade was paternalistic and insulting and an admission the sector would be harmed by T21.

"All the evidence shows that under-age children get their tobacco from sources such as family, older friends or the black market. Raising the legal age at which cigarettes can be bought won't reduce smoking rates, it'll just transfer trade from small business and retailers to the black market," Mr Mallett said.

Mr Mallett said he was concerned Mr Forrest's Minderoo Foundation was wholly funding a two-year research project looking at young smokers at the Menzies Institute to the tune of $99,556.

"This raises concerns about the Independence of the work being undertaken," Mr Mallett said.

"Imagine the outrage from anti-smoking activists if the tobacco industry were spending $100,000 on contracting a respected institution such as the Menzies institute to evaluate the efficacy of T21.

READ MORE: What makes young Tasmanians smoke? Research will try to find out

"These people would be claiming the research was comprised: the same question needs to be asked in this situation."

Mr Mallet said the small business sector was keen to explore ways to reduce the smoking rate but any changes to the current legislation needed to be based upon what would actually work.

"The small tobacco retail business sector continues to encourage Mr Dean, the proponent of the T21 legislation, to work with the TSBC to achieve the same results with a much improve vehicle," he said.