call for income tax in Bermuda.

But both the Progressive Labour Party and the National Liberal Party say income tax should be included in a comprehensive review of the Island's tax system.

Meanwhile, Finance Minister the Hon. David Saul said a review of the tax system was recently completed for Government and income tax is "not in the cards'' for Bermuda.

The Hon. Sir John Plowman, who held three Cabinet portfolios and served as Government Leader in the Senate during his time in the Upper Chamber from 1968 to 1982, has proposed a flat-rate income tax for Bermuda similar to one used on the Channel Island of Jersey.

Saying the present tax system was hurting tourism and destabilising Bermudian society, he called for an impartial review by an outside expert.

Shadow Finance Minister Mr. Eugene Cox said the Progressive Labour Party, which once included introduction of income tax in its platform, was not in favour of it.

A PLP Government would prepare a discussion paper on taxation, followed by a policy paper, he said.

"We would look at all the taxes that are available, look at all the systems, and come up with what we think is in the best interests of the people.'' Income tax would be among the possible taxes examined, he said.

Mr. Cox said it was "interesting'' to hear income tax raised from a member of the United Bermuda Party, within a year of the UBP raising Independence. They were the two "bogeymen'' the Government party had always raised to stir fears about the PLP, he said.

While Sir John Plowman said he had raised the subject of income tax with Government and got nowhere, Mr. Cox suggested the 86-year-old chairman of Holmes, Williams & Purvey Ltd. was floating a trial balloon for Government.

"It suggests that Government may well be looking at that seriously,'' but "the bogeyman has come back to haunt them,'' Mr. Cox said. Through its attacks on income tax when the PLP proposed it, the UBP had "destabilised anyone's thinking on such a matter.'' Dr. Saul said a Canadian consultant recently completed a review of Bermuda's taxation and some of the recommendations would be reflected in the Budget he would table on February 15.

But there would only be fine tuning of the tax system, not an overhaul, he said.

And consideration of income tax was not even part of the review, Dr. Saul said.

Sir John shared his views with Dr. Saul years ago, but the Finance Minister said income tax was not viable or sensible for a small island like Bermuda.

Jersey, as "a little adjunct of the UK,'' was an exception, because it was set up as a tax haven to lure much more highly-taxed wealthy people out of Britain, he said.

Increasingly, consumption-based taxes like value added taxes were recognised as the best way of raising revenue. "In Bermuda, it's not in the cards,'' he said of income tax.

Mr. Graeme Outerbridge, the NLP's public relations officer, said his party was "not necessarily particularly supportive'' of income tax, but it welcomed Sir John's call for "a total review of our tax system.'' Bermuda already had a form of income tax in the employment tax, but it was unfair that wages were taxes and investment income was not, Mr. Outerbridge said.

His party wanted "a system that is simple and fair and is proportional to the ability to pay from the top to the bottom.'' Government had to stop "reacting'' to new revenue needs, like the Base closure and Airport takeover.

The NLP was expecting an unpopular Budget and was worried by the prospect of a hike in the $15 Airport departure tax, an idea floated by Management and Technology Minister the Hon. Grant Gibbons.

Not only Bermuda's tax system had to be reviewed, but Government's expenditures, the size of the bureaucracy, and privatisation of Government services, he said.