from small businesses to large banks.

Mr. Trevor Allwood, of the Small Business Development Association, welcomed the tax breaks given to small businesses, which come into effect on April 1, 1993.

Dr. Saul raised the employment tax liability threshold from $50,000 to $66,000 per annum.

In order to ease the transition to the full impact of the tax for those employers whose payroll is above the new liability threshold, it is proposed that the level of the standard deduction be doubled to $2,000 per month, or $6,000 per quarter.

In addition, the payroll ceiling below which the deductions can be claimed will be raised from $100,000 to $200,000 per annum.

"We are pleased to see the Minister's taken the initiative to improve small businesses,'' said Mr. Allwood. "A number of small businesses had indicated their difficulties in meeting their Employment Tax payments.

"The measures are going to help small businesses improve their cash flow and improve opportunities for small companies to take on more staff.

"Those that have suddenly found themselves over the current $100,000 ceiling for claiming the reduction now have room to go up to double that amount.

"It will make a material difference to the small employer. In the past, some have felt that they would like to take on more staff but have been somewhat disadvantaged by doing so. The Budget is certainly a filip for the small business sector.'' Mr. Michael Collier, chief general manager of the Bank of Butterfield, said: "The Budget as a whole is an excellent one.

"The Budget has provided opportunities for Bermuda to attract new business on the international side and the Minister has been accommodating in trying to stimulate the hospitality industry, which is something we have to do.

"Whether it's an election year or not, I think the Budget still would have been the same because of the ongoing economic conditions the community finds itself in.

"I'm sure the man in the street has to be pleased there are no new taxes in terms of money coming out of people's pockets.'' Bank of Bermuda president Mr. Donald Lines described Dr. Saul's budget as a "superb effort, one that has taken into consideration the concerns and needs of the community''.

He commended the Minister's efforts to cut Government spending while continuing capital projects which provide jobs.