Realtors were yesterday surprised to learn that Government intends to raise the licence fee being charged to non-Bermudians who buy the Island's most expensive properties.

Not one welcomed the measure, having just successfully fought a Government proposal to levy a "capital gains tax'' on the difference between what non-Bermudians paid for their homes, and what they sold them for.

The capital gains provision was a part of the last Government budget, a provision which, it is now proposed, would die at the end of 1995.

But on Friday, an amendment to the Government Fees Regulations was laid before Parliament that would increase by 10 percent the licence fee that non-Bermudians pay to own Bermuda property.

Non-Bermudians are required, at present, to pay a licence tax that is 20 percent of the purchase price of the property they buy.

If the new proposal is successful, the fee will rise to 22 percent.

Realtors are not happy.

Mr. Roderick DeCouto of Roderick DeCouto Real Estate Ltd. said that the capital gains tax was "a silly thing from the beginning'' and the new provision would also cause for concern.

"It may not be as bad as the capital gains tax, but it is still a 10 percent increase,'' said Mr. DeCouto. "If anything at all, it should be decreased.

When you are buying a three and four million dollar house, that runs into a lot of money.

"The Government should be welcoming these people who bring in a lot of US dollars, when they move to Bermuda.

"I feel strongly against the increase and believe they are taking the wrong tack. I think it's outrageous and I don't know who is coming up with these ridiculous ideas, but that licence tax should be reduced. They are going in the wrong direction.'' His view was shared by others in the industry, but the Government has made it clear that the lost revenue from the repeal of the capital gains tax, must be raised in some other way.

Mr. Donald Scott, assistant financial secretary for economics and finance, said that it is envisioned that the Government could raise the same amount of revenue by increasing the licence fee.

He said that Finance Minister Grant Gibbons, was following the thinking adopted by his predecessor, and now Premier David Saul.

Mr. Scott said, "While he (Dr. Saul) was quite prepared to repeal that special section of the Stamp Duties Act 1976, he was also keeping one eye on the revenue base that was put on the place for 1995/96.'' Mr. Scott couldn't recall exactly how much more in revenue the new measure would raise, but he was "reasonably certain'' that it approximated the figure lost through the repeal of the stamp duties provision.

Meanwhile, chairwoman of the real estate division of the Chamber of Commerce Ms Cris Valdes-Dapena said she hoped that the measure would be rejected.

"It raises a concern. I would not like to see anything like that approved, unless at the same time the Government approved some kind of credit given to non-Bermudians -- who sell a property and buy another -- for the tax they have already paid.'' Right now, non-Bermudians who pay the 20 percent licence tax (15 percent for condominiums) and later wish to sell that home and buy another one here, would still be required to pay the Government a second licence tax.

She agreed with Mr. Decouto. "I think it's going in the wrong direction. I think it is not a good thing, but I don't think it is as bad as the capital gains tax.'' Mr. Arthur Jones, of realtors Jones Waddington, said the increase in the licence tax would increase the burden on the country. "No matter how they do it, it is just going to make us more expensive and price us out of the market even more. "It's just another added level of taxation. I hope that they don't change the availability of the properties, because I don't think that's in the country's best interest.

"To keep layering on the tax, whether it's taxing non-Bermudians who live here, or taxing everybody else, either way, it is increasing the tax burden on the country and it has to come out of the private sector earnings.''