My second paper on NRPT entitled ?A further dissection? was supposed to be my last. However, faced with abundant email feedback, I am making it a trilogy. I am neither a tax expert nor a politician. But circumstances have prompted me to voice my concerns that echo the feelings and opinions of thousands of Mauritians.

Take the interest issue. Some citizens have rightly pointed out that people are being made to pay tax on interest earned since July 2006 whilst the income tax amendment takes effect from October 2006. This means the taxman will charge tax on 12 months interest income rather than nine. The fault lies with some banks who have failed to issue certificates on a pro-rata basis. Will the MRA refund the excess tax paid? Because of this anomaly, thousands of families will now be unjustly liable for NRPT as the excess tax will make them exceed the Rs 385,000 threshold. Another windfall gain for the NRPT, which will definitely boost its total revenue to well above the Rs 60 million mark projected!

Now, what is the guarantee that all interest income earners will receive a certificate of interest and that all certificates will be accurate? Without doubting the credibility of banks, the risk exists that some banks, in an endeavour to protect some of their loyal clients, especially large depositors, will issue undervalued interest certificates! The MRA cannot possibly ascertain the accuracy of certificates as it cannot access confidential registers of depositors at the bank, or is it empowered to do so by law? Those who are well connected will thus easily avoid the tax net, whilst middle income earners face the full brunt of the tax! As a result, the tax on interest income defeats its purpose as it fails to target those high income earners.

Another issue that arises is the confidentiality of bank deposits. Now that the MRA is fully aware of the amount of interest earned by each household, it can calculate the amount of deposit held. But this does not affect the average citizen who has nothing to hide.

However much the minister of Finance convinces the nation of the necessity of imposing these taxes, the population will not recover from the undue stress subjected. Mauritians are by nature very sensitive when it comes to their purse, especially when it contains hard-earned money. Nobody refuses to pay tax, but everybody expects a tax to be reasonable, understandable, simple, fair and equitable. So much controversy surrounds these taxes that the government is losing credibility day by day. If nothing is done to stop the erosion, the electorate will surely remember the adage ?once bitten, twice shy??

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