Senators last night approved Government Budget plans to increase stamp duty on property and to hike up duties on a number of goods, including gas, cigarettes and alcohol.

The United Bermuda Party accused Government of hammering young couples who want to start out on a new home by hitting them with a $500 stamp duty fee.

UBP Senate leader Maxwell Burgess claimed it flied in the face of Government's stated aim of trying to tackle the housing problem because buying and selling cheaper properties will become more expensive.

Senators approved changes in the Stamp Duty Act which are projected to earn Finance Minister Eugene Cox an extra $1.5 million in the coming year.

The rate of tax in the first $100,000 will go up from two percent to 2.5 percent, adding $500 in duty to every transaction.

The ceiling at which ten percent is charged is reduced from $800,000 to $500,000. Stamp duty of 15 percent will be paid on the portion of the value of a settlement that exceeds $700,000. The previous threshold was $1 million.

Mr. Burgess said: "This is the craziest thing I have seen in 20 years. It makes no sense. There should be a $500 rebate if you build a house.

"It is a slap in the face for people trying to help the housing problem by building their house.'' But PLP Sen Michael Scott, a lawyer practising in conveyancing, said these changes would not act as a disincentive.

Senators also approved the Customs Tariffs Amendment Act which increased duty on gas by five percent, cigarettes by three cents to 13 cents each, and alcohol by five percent.

The Opposition chose not to debate tourism in the House of Assembly because Tourism Minister David Allen hogged the debate in the previous years, but senators discussed the issue yesterday and will continue tomorrow.

Government Senator Calvin Smith said the twin pillars of recovery would be the Hotel Concessions Act to encourage major refurbishments and the initiatives coming from the public /private sector conduit alliance.

He said Government was tackling the problems at their roots by ensuring the product was improved and Bermudians were being trained to the highest standards in the world.

But Sen Burgess said the PLP was lumbered with a a Tourism Minister who promises much but can't deliver and who the Government is scared to fire.