Retailers have had too good a year to merit getting a tax break, according to Minister of Finance Paula Cox.

Speaking to the Chamber of Commerce at a breakfast meeting yesterday Ms Cox said that while she knew that retailers felt they had been overlooked in the Budget, the latest figures showed that retail had grown in every sector in 2003.

"The facts show that the retail sector, in general, has been clawing back the ground that it lost following the decline in 2001," said Ms Cox. "No doubt with the assistance of the 12 months of payroll tax relief following September 11, 2001. In 2003 every segment of the retail sector posted reasonably strong results."

Ms Cox made the comments during the Minister of Finance's annual post Budget address to business leaders at the Hamilton Princess yesterday morning.

There was a more attentive air when she went through the previously announced payroll tax increases, with bosses sitting up in their chairs to find out how much more they will have to shell out in taxes (the rate for employers has gone from 12.75 percent to 13.50 percent).

And information on reforms on land tax were met with silence ? and just a few incredulous raised eyebrows on the Minister's pledge that the overall aim of this change was not to increase taxes.

But the Minister escaped a grilling at the end of the hour-long breakfast meeting when the floor was opened for questions ? and not a single hand went up.

"She met with a lot of us before the budget to let us know we were in for increases," said one businessman, who did not want to be identified. "So we were braced for the worst. But in fact it was not that bad, so we are all a little relieved."

Retailers have for years been asking for concessions from Government to help improve their plight. They had originally wanted the Island to be duty free ? an election promise that the Progressive Labour Party made when it was voted in ? but has since died a quiet death. Now they have moderated their calls and are asking for the same tax breaks given to hotels and restaurants by way of payroll and duty breaks for upgrades.

Ms Cox said: "It is impossible to please everyone and I know that retailers feel that they have been overlooked. In many ways the retailers are affected by the "ebb and flow" of the tourism sector.

"However not all retailers are affected and of those who are affected, not all are affected in the same way."

Ms Cox said that the Retail Sales Index for December, which is due to be released by Government today, showed that the annual increase in total retail sales in 2003 was up 4.9 percent which she said was in line with the overall gross domestic product growth for 2003.

"In these circumstances it would not have been fiscally prudent to grant concessions that would have had the effect of diverting additional funds away from key Government priorities," she said.

But she did say that Government was committed to continuing the dialogue and discussions with retailers to resolve some issues, including opening on Sundays and public holidays.

She also said that Government would look at adjustments to payroll tax for small businesses, ways to revive commerce in the East and West ends and the renovation and refurbishment of retail outlets.