Opposition MP Trevor Moniz has condemned Government's taxation policies, suggesting that Government tax exempt companies' payrolls -- but reduce the overall rate for everyone.

Mr. Moniz said with taxation on the now exempted big earners, the burden could be spread more evenly, ending the "unfair'' taxation of Bermudians.

"In my view, it was always unfair that people who work for the exempted companies that live here didn't pay payroll tax,'' Mr. Moniz said. "It always struck me as inherently unfair. And we don't need an expert to come in and write a report to tell us that.

"If we were all paying payroll tax it could be one hell of a lot lower than it is now. The tax rate could be reduced from 12 percent to ten percent or less.'' Mr. Moniz was responding to comments Shadow Finance Minister Grant Gibbons made recently in The Royal Gazette , calling on Government to "clarify'' the direction it intends to take the country and release a report by American tax experts.

A recent issue of Captive Insurance Company Reports claims the removal of a $250,000 cap on the payroll tax will increase costs to International businesses.

Finance Minister Eugene Cox expanded the scope of the report -- originally produced for the United Bermuda Party -- and has said the report will be released "in due course''.

The experts have looked into alternative or additional taxes and how taxation could help develop tourism and international business.

But Mr. Moniz is certain that not only is Government getting more money through the introduction of the "notional remuneration'' for exempted company bigwigs but that the tax burden could be spread more evenly.

He said when the bill was debated, Mr. Cox said there would be no additional revenue for Government with the new $250,000 cap for international businesses.

"I stood up and said he must be joking,'' Mr. Moniz said. "I said that anyone who did the basic arithmetic would see that it would generate millions which they (Government) should have accounted for.

"The Minister said we don't know, so we allowed for zero (growth in the payroll tax revenues). The people I've talked to say its generated money and would make in the region of $15 to $20 million.'' Mr. Moniz concluded: "I'm going to suggest that in the upcoming budget, in order to ease the pressure on exempted companies and ease the pressure on good hard working Bermudians, the Minister should reduce the rate of the payroll tax.'' Furthermore, Mr. Moniz said, doing that will make the Island more attractive for international businesses and it will join the trend toward tax reduction among industrialised nations.''