Independent Windermere MLC Ivan Dean said work was happening behind the scenes to build progress the legislation.

"An economic impact assessment is being done and I'm hoping that will be tabled later this month," Mr Dean said.

"We're hoping we can move this legislation forward in September."

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According to Mr Dean, the legislation was needed because a ban on the sale of tobacco to young people reduced smoking rates overseas. He added that Tasmania's standing as the Australian state with the second highest smoking rates was "embarrassing".

"We're seen as a clean, green state and our smoking levels defy that. It's an absolute nonsense, we should be doing the best of any state in this area and we can be.

"The people that can least afford to smoke are spending large sums of money on tobacco, a product that will cause them harm, ill health and premature death."

Mr Dean said the government's determination to save lives during the COVID-19 pandemic and be guided by public health advice should be applied to other aspects of health policy, to ensure the health, safety and wellbeing of Tasmanians remained a number one priority.

"It's hypocritical of the government to come out in one area and have this position, and then in another area where the evidence is stark, to not take it on and do something similar," he said.