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A MULTIOBJECTIVE LINEAR PROGRAMMING METHODOLOGY TO DETERMINE THE OPTIMAL TAX RATIOS

. Sumaira Yousuf Khan , Sahar Altaf, Attra Ali, Laiq Muhammad Khan & Sohail Rana


Abstract

In this research, a multi-objective linear goal programming model is developed to assist policymakers in structuring the nation's tax system and to facilitate the country by ensuring economic prosperity, which will ultimately lead to a boom and well-being in the nation's status. Since the amount of taxes imposed impacts a nation's economic growth. Every nation's government faces constant challenges in creating and implementing an effective tax system. The scope of this analysis is restricted to specific tax rates, including general sales tax, petrol tax, food and medication tax, telecom tax, etc. Sales tax is the largest contribution and the most regressive of them all. The main objective of this study is to develop an optimal mathematical model using the weighted goal programming variation suggested by Ganesh et al. [1] in order to determine and assign the optimal tax ratios. Using this methodology, the objectives with minimum deviation can be achieved.

 

KEYWORDS: Goal Programming, Mathematical Model, Multi Criteria Decision, Tax Ratios

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