"We acknowledge there are social and economic benefits for the district, but we also want the community to share their views," Smith said.
She also added the policy didn't mean businesses must open on the restricted trading day.
"If we continue to allow shops to open on Easter Sunday, it will still be up to business owners to choose whether they open," Smith said.
"Employees also retain their right to refuse to work on Easter Sunday."
The policy excludes businesses such as garden centres, petrol stations and pharmacies, which can already open on Easter Sunday.
The policy does not apply to liquor outlets, however, which are covered separately by liquor licensing regulations.
Paihia is one of several locations in New Zealand exempt from shop trading hours restrictions under the Shop Trading Hours Act 1990, meaning shops in Paihia can open on Easter Sunday regardless of the council policy.
Kaitaia Business Association chairwoman Andrea Panther welcomed the idea and said it would be incredibly beneficial, especially to those working in hospitality.
"Families and friends often get together at Easter and are likely to take up going for lunch, coffee or dinner out together," Panther said.
"I'm not entirely sure all our businesses would open, but I do like how it's their choice.
"Often, staffing is a reason preventing businesses from opening on public holidays when lots of people are around.
"With the rollercoaster years we've come through, any opportunity to allow businesses to earn more revenue to make up for those tough years must be welcomed."
Feedback on the proposed policy will be open until 5pm on Friday, June 10.
The proposed Easter Sunday Shop Trading Policy and accompanying Statement of Proposal can be viewed online at the FNDC website or is available at council service centres.
You can provide feedback on the proposed policy at www.fndc.govt.nz/yoursay or email feedback to submissions@fndc.govt.nz.
Oral submissions will be held on Tuesday, June 14.
Email submissions@fndc.govt.nz or tell us at www.fndc.govt.nz/yoursay if you would like to present an oral submission.
