the sales tax, it was revealed last night.

The Chamber of Commerce has put together a committee to study the customs duty-based tax system and the benefits or disadvantages of a tax at the point of sale.

Andrew Sykes, Government's economic advisor, is also working on the committee, which has been endorsed by the Finance Minister and which could produce a report as early as the New Year.

Last night Chamber president David Rowntree said: "At this point we are not saying that a sales tax is a good or bad thing.'' He stressed that although Finance Minister Grant Gibbons has endorsed the committee it did not mean he had endorsed a sales tax.

"It is premature for the Minister to come out and say anything because he knows we are working on this. That is why he has not committed himself,'' he added.

The Chamber's committee was set up a few weeks ago and is made up of a small number of people including members of the group's retail division and accountants.

Mr. Rowntree said it could produce a report in the New Year and the committee could evolve into a bigger group once it started to come up with any answers to the tax situation.

It also comes in the wake of an announcement by Dr. Gibbons that outside experts were to help in a thorough examination of the Island's tax system.

However Mr. Rowntree said the Chamber approached Government about setting up the committee and did not want to force Government into a quick fix.

But he said: "We want to say that we recognise that the retail industry in Bermuda is in a crisis situation and one of the concerns is the cost of doing business in Bermuda. It is extremely high,'' added Mr. Rowntree.

"The committee is looking at the tax system, but more specifically at the duty structure and whether it can be replaced by a sales tax. The ultimate objective is to see how a sales tax, or similar tax, can help the retailers and still be a source of income to the Government. You have to replace what has been lost.''