David Jones chief executive Paul Zahra says the Gillard government is partly to blame for the department store's shock profit downgrade, as a string of tax increases have stung its core customer base and triggered a sales collapse.

On top of the new taxes, which had hurt his customers' disposabe income, Mr Zahra also blamed successive interest rate rises, the high Australian dollar and sales leakage to the internet.

David Jones chief Paul Zahra blames the carbon tax for a slump in consumer confidence. Credit:Penny Stephens

Speaking today, Mr Zahra said the upmarket department store had not seen anything like the recent consumer pullback in more than 20 years.

"I think the [carbon tax] debate has certainly fuelled a reduction in confidence," he said.