Since the Government has moved from a progressive tax to a Single Rate of tax, the research will be based on the comparison of the Flat tax regime, already present in Worldwide Economies, and the Progressive Tax system. The present research is based on the following objectives:
- To ascertain the existing income tax system and income structure for Mauritius.
- To identify through a computation of the Gini-Coefficient the progressivity pattern of the income tax system in Mauritius.
- Contrast between a Progressive tax (previous tax system) and a Flat tax regime. (Proposed changed)
- To calculate the effective tax rate for typical categories of emoluments earners (single/married/married with two kids).
- Trace the perceptions of individuals regarding the new tax regime
- To provide recommendation to policy makers to make the tax system fair and socially acceptable.