The Australian Retailers Association (ARA) scored today the federal government's backtracking move on the planned company tax rates as a result of its revised mining tax which has been adjusted to collect $1.5 billion less revenue from the previously announced set up.

Appearing as a collateral damage from the compromise struck by the government with giant mining companies, the proposed two percent reduction in the corporate tax rate is now expected to be levelled to a mere one percent once the mining tax is implemented.

ARA executive director Russell Zimmerman said that the government's decisions would be detrimental to the interest of the retail sector as he lamented that "due to tax concessions to the mining sector, the Gillard government has penalised all companies and small businesses that were due to benefit from the promised company tax cut."

Mr Zimmerman reminded the government that the retail industry was already reeling from the effects of soft trade figures, the minimum wage increase and ballooning superannuation payments.

He said that retailers are now facing a gloomy outlook as "their income from sales is decreasing, expenses from wage bills are increasing and now superannuation will increase with only a one per cent cut to the company tax rate."

Mr Zimmerman called on Prime Minister Julia Gillard to also consider the sentiments of the retail industry and possibly hold an open consultation with its major players as they after all "who represent a large part of the Australia economy and who employ over 1.5 million people."