be a thing of the past as departure tax for locals and visitors is to be included in airfares, the House of Assembly agreed yesterday.

Finance Minister Grant Gibbons won backing for the Passenger Tax Amendment Act which means from October 1, the $20 head tax will be part of the airline ticket cost.

The move is the culmination of almost a year of talks with the airlines serving Bermuda.

Airlines will not be paid a commission and for every $20 paid, Government will receive $20 from the airlines within 15 days of the tax being paid.

Yesterday Dr. Gibbons said: "The Department of Airport Operations struck a deal in April, 1996 to allow the passenger tax to be included in the cost of the ticket.

"What we are doing is not an unusual situation and will provide a great deal of convenience for the visitor and locals.'' The Act provides for people who are exempt from the tax and will mean airlines will supply the Government with monthly passenger figures. Refunds will also be given for hotel tax vouchers.

Yesterday UBP MPs welcomed the move although some Opposition MPs were cautious and argued the tax was too high.

Transport Minister Wayne Furbert said the airlines would receive no commission for collecting the tax.

And Tourism Minister, David Dodwell fully endorsed the move which he said would remove a "major irritant'' and shifted the burden to the airlines.

Former Premier Sir John Swan said the fact that airlines had agreed to the move showed how they valued their Bermuda routes.

"This is a major achievement because airlines do not normally like doing this sort of thing,'' he said.

Ottiwell Simmons (PLP) said locals and visitors complained that the tax was too high.

"The Government has pulled a coup by striking a deal with the airlines to tax the tourists in the ticket rather than when they get to the airport and be embarrassed with `you owe $20','' he said. "We ask that the tax be reviewed in the light of the numerous complaints from locals and tourists about the amount.'' Reginald Burrows (PLP) also expressed concern that the ticket price -- inclusive of the tax -- would make it much higher.

"I hope that the departure tax will not be increased and so affect the ticket price,'' he said.

Shadow Tourism Minister David Allen said arguably it was a step forward, but said Government was struggling to find ways of collecting a tax that was becoming "more and more of an irritant''.