The Alliance of Australian Retailers today called on the government to abandon its policy to require plain packaging for tobacco.

Alliance spokesperson Sheryle Moon said Australia's corner stores, convenience stores, milk bars, newsagents and service stations have today placed an open letter in newspapers across the nation telling Canberra they were fed up with excessive regulation that was making it difficult for small companies to run their businesses.

"The proposed plain packaging for cigarettes is the final straw for small businesses and we have created a new peak body to advocate against it," she said.

"Representing around 15,000 mostly small businesses that employ almost 200,000 Australians, the Alliance is telling government that enough is enough!

"We believe reducing smoking is good for our community but good policy requires more than good intentions.

"There is no reliable evidence anywhere in the world that plain packaging will stop people from taking up smoking or help people quit. So if it won't work, why do it?"

Ms Moon said the proposed plain packaging had been rejected by the UK and Canada.

"With every state in Australia already moving to ban the display of tobacco products, customers won't even be able to see cigarettes when they walk into our stores, so how will plain packaging make any difference?"

According to Ms Moon, "The government should support hard-working Australians instead of pursuing an untested and unproven policy."