first time in 20 years -- but the prospect of income tax has been firmly ruled out.

Finance Minister the Hon. David Saul said the review would probably be carried out in the summer.

And it is likely the expert will come from Canada, as before.

Government also plans to bring local businessmen together to discuss possible changes to the Customs Tariff.

Talks will be aimed at making the tariff more effective, and easier to understand and use, without losing Government revenue.

A Government working committee should be formed before the summer to review the tariff.

The initiatives were touched on by Dr. Saul in his Budget statement last Wednesday when he told MPs the last detailed review of the tax structure was in 1973.

"Since that time there have been many changes both in the global and Bermudian economy.

"Therefore, I would like to announce Government's intention to carry out a review of the existing tax structure with the objective of further refining our current consumption-based tax system which is the envy of many countries.'' Earlier, he had stated the economy was beginning a modest recovery from the worst recession since the 1930s.

Now was not the time to increase the rate or level of taxation, he added.

Yesterday Dr. Saul said the review had not been prompted by any glaring weakness in the current system.

It was important, however, for an independent assessment of Bermuda's taxes.

Dr. Saul said he had often flaunted the Island's tax system at conferences attended by VIPs from overseas, including Davos, Switzerland.

"I am always saying how excellent it is, but it would be good to get an objective review,'' he said.

"We need someone from the outside who can spend two weeks here looking at the whole structure, without any coloured spectacles.

"He will be able to say this is good and that can be dropped. It may be that he considers everything is marvellous and needn't be changed.'' Dr. Saul said the expert would produce a report, with or without recommendations. It would be considered by Cabinet.

"In the past we've had people from Canada, where the accounting principles are the same as ours, but that's not to say we won't choose a different country this time.'' A Finance Ministry spokesman said yesterday he could not foresee any major changes. A consumption-based tax system would remain.

On the Customs tariff, Dr. Saul said he hoped to meet the business community to see how it can best be streamlined.

Some changes are already being made to simplify tariff procedures.

For example, pure natural fibre clothing will be subject to 8.5 percent duty, while all other items will attract 22.25 percent.

Children's clothing will continue to be subject to 11.25 percent duty.

The measure will bring the number of clothing tariff rates down from five to three, said Dr. Saul.