The Finance Minister is considering a change to the new corporate services tax announced in the February 15 Budget.

The Hon. David Saul said yesterday he was responding to recent discussions with the business and legal community.

In the Budget, Dr. Saul announced a $400 per client annual fee which would apply to companies like law and accounting firms which provide corporate services to exempted companies with no physical presence in Bermuda.

The move was expected to generate about $2.9 million in extra revenue. Dr.

Saul explained that expansion in the international business sector was largely responsible for growth in the Country's gross domestic product, but the growth in GDP was not being reflected in increased Government revenues.

Yesterday, Dr. Saul said he was considering a change that would replace the flat $400 fee with a percentage charge.

"It is being put to me now that there may be a better way of doing it,'' he told The Royal Gazette . "I'm considering some amendments.'' Dr. Saul has already announced changes to some measures announced in the Budget, which raises revenues for $390.4 million in 1995-96 current account spending. Budget changes being made or considered include: Instead of increasing the range of charges to which the Hotel Occupancy Tax will apply, Dr. Saul has opted to increase the rate of the tax to 7.25 percent from six percent.

The bill to provide for the increased rate while leaving alone the charges to which the tax will apply, was tabled yesterday in the House of Assembly.

The original decision to extend the six percent tax beyond the hotel "rack rate'' had been taken because while visitor numbers and hotel occupancy were improving, revenues from the Hotel Occupancy Tax were declining.

"We've had numerous discussions with the hotel association,'' Dr. Saul said yesterday. The hoteliers did not feel the plan to extend the six percent tax to telephone and meal bills would raise the revenue Government projected. They said they would prefer a small hike in the rate of the tax.

Dr. Saul said he expected the amount of revenue the tax raised would be the same.

A softening of what has been called the capital gains tax on property sales by non-Bermudians.

The Stamp Duties Amendment Act, which passed the House of Assembly this week, was changed to allow non-Bermudians to deduct the 20 percent licence fee they paid when they purchased the property from the amount of profit they made on the sale. That profit is still to be taxed at a rate of ten percent.

Dr. Saul said further changes are being considered, and he expected to return to the House with amendments before the summer recess.

A change is being considered in the name of the Airport departure tax, which was hiked to $20 from $15 in the Budget.

Dr. Saul said that "for psychological reasons,'' many countries call the tax an airport security tax or maintenance tax.