specialists at a cost of more than $100,000.

They could spend up to six months considering whether a more equitable system can be used to garner government revenue.

Finance Minister Grant Gibbons yesterday confirmed the visit to The Royal Gazette and released details of the review to journalists last night.

The tax and economic consultants who have been hired are tax lawyer Harry Gutman from Pennsylvania law firm King & Spalding and US economist Eric J.

Toder.

Mr. Gutman has had extensive experience in tax policy and legislation, including having been chief of staff of the joint committee on taxation of the US Congress, and, deputy tax legislative counsel in the office of tax policy at the Department of the Treasury. He has also taught as a professor at the University of Virginia and Pennsylvania Law Schools.

Mr. Toder has been deputy assistant Secretary of the Treasury for tax analysis at the Congressional Budget Office. He was also heavily involved in the reform of the New Zealand tax system.

The US consultants had the winning bid over two similar UK economic consulting firms, after Government put the consultancy out to tender earlier this year.

The consultants were here last week in discussion with various Government officials, including some in the Ministry of Finance, to get an understanding of the tax process and gather a mountain of statistics and other information on the Bermuda economy.

They return early next month to speak to a broader cross-section of individuals and organisations to understand their views on the current tax system.

Dr. Gibbons said they "will focus on the criteria of equity, economic efficiency and ease of administration of the tax system.'' Dr. Gibbons said the consultants will: Examine the Government's reliance on its current range of consumption taxes; Consider the appropriateness of the current distribution of taxes in different sectors of Bermuda's economy; Review and evaluate the appropriateness of customs duties as the main form of indirect personal consumption tax; Consider the appropriateness of current tax privileges; and, Report on any alternative or additional taxes that may appear appropriate to the Bermudian economy and, in particular, how the tax system may be adjusted to assist in the development of tourism and international business.

The review will come as a welcome to retailers who have complained loudly that the current system of direct taxation, via customs duty levied at the point of entry, restricts their operations and squeezes them financially with prohibitive, up-front costs that they may never redeem.

Government faced heavy criticism from cash-strapped retailers over the last year, with some calling for the dismantling of import tariffs in favour of a sales tax.

They argued it would bring prices down for the consumer because merchants would no longer have to factor in the carrying costs attached to customs duties.

At present, they pay duty on goods they import and pass the added costs on to their customers at the point of sale. But retail sales slowed in recent years, leaving the merchants to swallow the customs duty costs on goods they sometimes couldn't sell.

They will get an opportunity to explain their point of view to the experts who have been contracted by Government to complete the study of the tax structure at a cost of more than $100,000.

Government, in recent years, have taken some measures to reduce the tax burden on some retailers in an attempt to spur more retail activity. But Bermuda businesses will welcome any opportunity to explain how "wholesale'' changes will be required to stop the flood of Bermudian shoppers to US malls.

The most recent tax review comes as no surprise. Near the beginning of the year, the Finance Minister proclaimed in his Budget Statement: "I feel it is appropriate to initiate an external, high-level review of the components of our entire tax structure.''