cuts, the chairman of the real estate division of the Chamber of Commerce said yesterday.

Ms Cris Valdes-Dapena, a partner in Darling & Dapena Real Estate, said she has written Finance Minister the Hon. David Saul asking for clarification on the new ten percent tax on property sales by non-Bermudians.

"The phrase, `Kills the goose that lays the golden eggs,' has been on more people's lips in the last week than in the last four years,'' said Ms Valdes-Dapena, adding that she was speaking personally, rather than as chairman of the Chamber's real estate division.

Government appears to be "incrementally moving toward a point which they won't know they've passed until they've done it, by which time the goose will be dead,'' she told The Royal Gazette .

In his February 15 Budget, Dr. Saul announced "a ten percent stamp duty on the gain in value on the resale of (property purchased by non-Bermudians) with the duty being paid by the vendor''.

Debate on the Budget begins today, with Shadow Finance Minister Mr. Eugene Cox delivering the Opposition Reply this morning.

Ms Valdes-Dapena said if it was a capital gains tax, costs like capital improvements, the agent's commission fee, and the 20 percent licence fee non-Bermudians must pay to Government should be deducted from the gain.

But it appeared the tax, which took effect immediately, would be applied to the entire difference between the purchase price and the sale price.

To penalise non-Bermudians for improving their properties "sends the wrong message and achieves the wrong effect,'' she said.

Bermuda's luxury real estate market was arguably the priciest in the world, she said.

Virtually no non-Bermudians purchased Island real estate as an investment, because "our Government has effectively taken out any investment inducement,'' she said. That was an aim of Government which she agreed with, but it had been achieved prior to last week's Budget.

Ms Valdes-Dapena said 80 to 90 percent of Bermuda home buyers from overseas "have been people working in the financial services sector'' and they "care about what they're doing with their money''.

Therefore, it would not be wise to make it "financially adverse'' to buy in Bermuda.

She said the new tax "in effect increases the cost of buying property in Bermuda''.

And affecting price affects demand.

"How price sensitive is our market?'' she asked. "We don't know. That's what David Saul is experimenting with. Will it be fatal? We don't know.''