industry more competitive, a local merchant suggested yesterday.

Mr. Eldon Trimingham, president of Trimingham Brothers Ltd., called on Government to abolish tax on some categories of merchandise, in order to make shopping in Bermuda a more attractive option.

The retail business is "all part and parcel of a viable economy,'' he said.

He named televisions, hi-fis, and most clothing as potential targets. Since food is only lightly taxed, abolishing the duty on it would only be of "borderline benefit''.

He said about one third of every dollar spent in his stores found its way onto the payroll.

And there was a big supporting industry in Bermuda, including truckers, dockers, and advertising media. Mr. Trimingham estimated this "supporting industry'' employed about 4,500 people.

The increase in dollars kept on the Island would eventually benefit Government through other taxes such as on cars, Mr. Trimingham claimed.

He said sales tax was one alternative to customs duties. Retailers would pay the tax when and if the goods were sold. Duty is currently paid when the merchant brings the goods onto the Island.

However, he said, sales tax would mean the same prices for the customer, and would add "an immense amount'' of extra accounting.

Minister of Finance the Hon. Dr. David Saul said "Customs duty accounts for one third of Government revenue, which is in excess of $350 million.'' Out of this it would be "somewhat difficult'', he claimed, to separate retail taxes from others.

Dr. Saul added: "I don't basically accept the argument that it would stimulate retail activity.'' As the Taskforce on Competitiveness has not yet turned in an interim report, Dr. Saul said he did not have enough information to address Mr. Trimingham's suggestions.