Act 1995, Government Senate Leader Sen. Lynda Milligan-Whyte said the Government was looking for areas to reap extra revenue.

The legislation -- which was passed yesterday -- repeals a ten percent capital gains tax on foreign-owned properties being sold.

Sen. Milligan-Whyte said Government could not tax hotels any more as some were just breaking even or losing money and businesses could not be taxed further if Bermuda was to remain competitive.

"We also looked at another group of people which we have not taxed significantly before -- these were non-Bermudians who had bought property in Bermuda and had to pay a licence fee,'' she said.

"Government said these people used the infrastructure and the airport and maybe they should contribute to our tax base. A decision was taken to impose a ten-percent stamp duty on the difference between the purchase price and sales price.'' She said there was an outcry and a decision was taken to repeal the 10 percent tax, which the amendment is designed to do.

"As a result, last week we approved a Government Fees Amendment Number Two Act which increased the licence fee by two percent.'' Sen. Terry Lister (PLP) said Bermuda's tax system was in need of an overall review.

He said the Country would enjoy a breath of fresh air when a Progressive Labour Party Government came into power.

This was because the present United Bermuda Party Government was too worried about taxing its "friends''. Such loyalties would not exist under a PLP administration.

Sen. Lister added: "We are fully in favour of withdrawal of the bill. I applaud the UBP for having the braveness to admit their shortcomings.'' The Senate yesterday also passed the Miscellaneous Taxes Amendment (No.2) Act 1995.

This delays until January, 1997, the levying of fees on certain professionals who register with industry organisations.

In his February Budget, then Finance Minister David Saul announced every registered member of a professional organisation would pay a new tax, ranging from $50 a year for nurses to $2,500 for doctors.

Sen. Milligan-Whyte said Government may amend -- or even repeal -- this legislation.

She said the delay until 1997 was an example of a "responsive'' Government listening to the complaints of professional organisations.

Sen. Lister said he had been shocked by this year's Budget, which appeared "willy-nilly''.

"This bill was so flawed it was ridiculous.'' Sen. Lister said Government had originally claimed the fees on professionals would bring in $3 million.

If the bill was to be withdrawn, how would Government pull in that amount of money? "Who gets Government's ear?'' Sen. Larry Scott (UBP) said the bill should not be repealed, although he had no problem with delaying its effect.

Those with the ability to pay should pay taxes, he added.

Sen. Norma Astwood (Ind.) said the legislation should be looked at carefully.

"The structure needs to be looked at,'' she said.