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Alan Johnson has told Parliament that displays of tobacco products in shops in England and Wales are to be banned.
The health secretary said the move to push cigarette sales "under the counter" was designed to reduce the number of children who smoke.
In a written statement to MPs, the cabinet minister was set to promise a "fully inclusive" plan with help for businesses hit by the impact.
There will also be further action to prevent young people accessing cigarette vending machines.
"Any sane, rational and sensible government will be focusing on removing what is the biggest public health risk," Johnson told the BBC.
"This is primarily about children, 11 to 15-year-olds. Advertising has been removed from television, film and newspapers. The only point now where there is advertising is point-of-sale.
"Other countries have found when they banned point-of-sale displays, they reduced the number of young people taking up smoking.
"That is the primary concern we have here. Also, having these displays prompts impulse purchases and makes it more difficult for people who are determined to quit to actually quit."
The Tobacco Manufacturers' Association said that a recession was "hardly the time to knock small businesses by measures such as these".
TMA director Chris Ogden told the BBC that point-of-sale displays allow "consumer choice and competition between manufacturers and retailers".
But Harpal Kumar, chief executive of Cancer Research UK, said: "We are very encouraged by the announcement to put cigarettes out of sight but disappointed that vending machines will still be available.
"Nearly 50,000 teenage smokers get their cigarettes from vending machines so this is a missed opportunity.
"More than 80 per cent of smokers start before the age of 19 and tobacco kills half of all long-term smokers so the need for action remains as important as ever."
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