yesterday.

The Senators passed the Miscellaneous Taxes (Profession Registration Tax Repeal) Act 1996, which cancelled what would have been a new annual tax on professionals.

Government Senate Leader Lynda Milligan-Whyte said the purpose of the bill was to abolish the tax before it went into effect in January.

She said the tax was to be repealed because of the difficulty in taxing professionals who were not regulated by a professional organisation.

Sen. Milligan-Whyte said the bill singled out certain professions, like doctors and lawyers -- who belong to professional organisations -- and omitted professionals like teachers, who do not belong to a group.

Many professionals, she said, had threatened to resign from their organisation thus forcing Government to repeal the tax.

Opposition Senate Leader Milton Scott reminded the Senate that the Opposition was against the tax when it was first introduced to the chamber in 1995.

He said that during the 1995 debate on the tax, four senators stated that the tax was not in the best interests of the country.

The fact that the professionals would pass the cost of the tax on to their clients was raised during the 1995 debate, Sen. Scott said.

Independent Senator Walwyn Hughes pointed out that tax reform was not a simple matter and that any changes needed to be done carefully.

PLP Senator Neletha Butterfield said the Government was looking for a quick fix and an additional source of revenue with the proposed tax.

And she reiterated the PLP's call for an overview of the Island's tax structure.

Sen. Milligan-Whyte said she welcomed the act repealing the tax stating: "I do not think it is right for a country to tax its intellectual base.'' The bill passed the third reading and will be sent to the Governor Lord Waddington for Royal Ascent.