Smokers and drinkers will not be hit in the pocket after this year's Budget spared Bermudians from dreaded "sin taxes''.

Duties on alcohol and tobacco were frozen for the year by Finance Minister Eugene Cox in Friday's budget.

And the Island's cigarette and liquor distributors hailed the decision as one which could help revive tourism.

Burrows Lightbourn Managing Director Richard Hartley said: "The duty on alcohol in Bermuda is already very, very high.

"A lot of people don't realise that the duty on a case of Scotch is over $120 and when you think of it that way, it starts to hit home.

"You are talking about $10 a bottle of spirits which all goes in tax. So we think our taxes are already too high and this is the type of thing which makes Bermuda so expensive for our tourists.

"That's why this can only help the hospitality industry and our restaurants and bars must be very pleased today.'' The Government claims $23 for every litre of spirits sold in Bermuda. Duties are 86 cents for every litre of beer and $22.50 for a case of 12 bottles of wine.

Mark Morabito, General Manager of Frith's Liquors, said: "Duty on alcohol is already amongst the highest in the world, here in Bermuda.

"We're probably in the top five or six countries. But it's the Government's stated goal to try to help tourism and we think this is something that will only help the consumer at bar level.

"It should also have a positive impact on trade when visitors come to the Island.'' Nancy Gosling, President of Gosling Brothers, also supported Mr. Cox's Budget statement.

She said: "We had a very major increase several years ago, which has put us in a very high duty category compared to other countries.

"I think most people interested in promoting tourism know that we can't get too much more expensive on wines and spirits here, because the Government already makes a significant revenue from alcohol.

"This Government has started in a positive way and we're not surprised.'' Cosmopolitan Liquors owner Ellis Frazzoni, also a shareholder at Dismont Robinson, added: "The positive thing is that this won't hurt tourism.

"It seems liquor and tobacco are the first things to be hit every time, whenever there's a Budget. But not this year.'' New cigarette distributors Cassia also said the decision not to increase the $83-per-kilo duty on tobacco would help them ease into the marketplace.

General Manager Reggie Cabral said: "It's a relief in the sense that I won't have to pay any more on the next shipments that come in, even though I've got enough stock to last a considerable amount of time.

"This means we can keep our prices down and so can the other distributor on the Island, so it's a level competition.

"It's a friendly Budget for us to start off in business and we thank the Government for it.'' But Ken Hockenhall, General Manager at Pitt and Company, said: "I don't think the business aspects are that significant.

"What we're looking at here is Government policy. The Government has put a neutral policy in place so they do not attack any particular sector of the economy.

"I think they have followed through with that rather successfully. The market would clearly be affected if taxes were forced up above the norm, which is say six or seven percent.

"But really we're just pleased not to be singled out. We've seen a massive decline in the volume of trade over the last 10 years and costs have been driven up higher and higher.

"Nevertheless, we've been here for over 100 years and I expect us to be here for another 100 years.''