Retailers have welcomed Government's decision to grant temporary payroll tax relief to their sector and increase the rate of customs duty on declared goods bought overseas by 10 percentage points.The new measures which were introduced by Premier and Finance Minister Paula Cox and came into effect on Saturday will see payroll tax lifted for retail businesses for the next six months to March 31. Duty rates on goods declared at the airport by returning residents will rise from 25 percent to 35 percent from November 4 with the allowance being restricted to one person per household.Ms Cox has also ordered a review of business classifications to determine whether certain enterprises like barber shops, beauty salons and gas stations should be eligible for payroll tax relief.But some retailers have urged for more to be done such as increasing the rate on goods bought over the internet.George Grundmuller, president and CEO of the Phoenix Stores Ltd, said that the payroll tax relief was “much-needed”.“I think retailers are in very bad shape after 39 consecutive months of decline and I think that was the right thing to do (to introduce payroll tax relief),” he said.“On the issue of tax relief, for me, I think it less one of what comes through the airport than that of internet shopping.”Mr Grundmuller said that goods shipped in delivery firms such as Federal Express, Mailboxes Unlimited and DHL represented a much larger proportion of products coming into the Island than those declared at the airport and called for a similar 25 percent tax rate to be levied on those items.He said that it did nothing to support the local economy and businesses as Bermuda dollars were leaving the Island and the only parties standing to benefit were overseas vendors and couriers.Citing the payroll, land and corporation taxes among some of the retailers' main overheads, Mr Grundmuller said that on top of that there were high rents and salaries which all added to the cost of doing business in Bermuda compared to their US counterparts.He likened the potential impact of online shopping on the Island's retail stores to the destruction of the US manufacturing industry after big outlets such as Walmart brought in cheaper products from the Far East resulting in hundreds of thousands of American workers losing their jobs because they weren't able to compete.Conceding that retailers had their part to play in terms of offering the best service and value for money to the customer, Mr Grundmuller said there were some factors (high overheads and staffing costs) that couldn't be changed, although he was open to a change in the tax structure and a keen proponent of sales tax as opposed to the present duty structure having to pay duty on goods that may not sell, get damaged or may be stolen.Kristi Grayston, owner of Pulp & Circumstance, said that every little bit that could help retailers in the current economy was a boost.However she said that the customs duty increase at the airport could be avoided if the same 25 percent rate was applied to goods brought in by courier firms.“The Premier really gets retail,” she said. “She is a friend of retail and these measures should be provide some help, particularly to people who are really struggling.“It is the little things like this that will help to turn this economy around.”Donnie Correia, general manager of M&M International, also commended Government's latest move to aid retailers and would help to create a more level playing field with their overseas competitors.“We are happy Government has made a move to help out the retailers and that will definitely help out with the way that the economy is going right now,” he said.“The rise in customs duty makes it a fair playing field for the retailers now given the expenses that we have to pay in freight and other duty to bring goods into the stores.“Us as retailers can now be competitive with our offering similar prices for the same product that you can get overseas.”Sharon Bartram, owner of 27th Century Boutique, said that she appreciated the Premier's actions during these tough times.“For the customs duty I think that that is absolutely the right thing to do at this time because retailers are really having a hard time of it,” she said.Terry Lee Smith, owner of Clara-Bows Boutique, similarly applauded Government's efforts to help stimulate local trade.He said that while there would always be those who chose to shop abroad, the increase in customs duty might encourage others to take another look at what was available at home.The new measures were announced on the same day that the Bermuda Chamber of Commerce held its Fashion Night Out with special events being held across Hamilton from Front Street to Reid Street and Washington Mall on Friday night and retailers and restaurateurs offering discounts and promotions.Paula Clarke, chairman of the Chamber's retail division, hailed the evening as a great success with a big turnout from locals and tourists alike.“The atmosphere was electric,” she said. “We had very good feedback from the public and retailers we have spoken to so far.“A number of businesses said that although there weren't a lot of people out spending some came back in the next day to buy something.“Others said that it definitely increased business for them, so I think all-in-all everyone was very pleased with how it went.”Gorham's staff were out and about in their hard hats and tool belts handing out vouchers for use in store while live models in shop windows enticed shoppers inside and a break dancer livened up proceedings in Front Street.There were also wine and cocktail tastings to lure the public out in force.The Chamber commissioned 15 photographers to take pictures of the events and the public can vote on their favourite piece of work on its Facebook page with the winning entry receiving a prize.Another event is planned for Thursday November 3 and Friday November 4.