Daming: Dad, you are really not good at governing the country

Chapter 436: Zhu Gang and Xu discuss money and grain, and talk about tax planning (Part )
It is said that the Prince Jin's Mansion has been bustling with activity for several days in a row.

It's like a boiling hot pot, emitting steam.

Everyone is in a hurry, all busy working for something important.

The usually quiet accounting office in the palace was bustling with activity at this moment.

All the accountants gathered together, and the room was filled with smoke all day long.

The curling green smoke seemed like their thoughts that came out after they racked their brains.

The fragrance of tea and ink are intertwined, spreading in this small space.

The table was piled with thick account books and various documents, piled up like a small mountain.

These accountants all had frowns on their faces, and from time to time they huddled together and lowered their voices.

You and I were discussing in low voices, and our expressions were so serious as if we were discussing military and national affairs.

Sometimes they wrote quickly, and the rustling sound of the pen tips rubbing against the paper was like a unique piece of music.

They repeatedly considered every clause in the new commercial tax system, just like carving a rare treasure.

He carefully weighed the pros and cons of every situation, and no one dared to disturb his concentration.

Finally, after everyone worked hard and put in a lot of thought, a comprehensive commercial tax plan took shape.

Then after several days of careful polishing, it was finally carved to perfection.

That day, Zhu Gang, who was sitting in the study, looked serious and focused on Xu Miaoyun and said, "Miaoyun, this new business tax plan has been completed, and I feel relieved.

Today, I have some free time, so I will tell you about this new business tax plan.

Xu Miaoyun had a curious look on her face, with a lively gleam in her eyes.

She smiled and responded, “Okay, Your Highness, please tell me quickly.

Seeing that the accounting office is very busy these days, I have been very curious.

What kind of plan could make them spend so much time and effort on it? "

Zhu Gang cleared his throat and straightened his back slightly.

He said seriously: "This new business tax plan takes many aspects into consideration, especially the taxation regulations for commercial transactions, which are detailed and reasonable.

First, the tax categories were divided according to the different types of business transactions. "

Xu Miaoyun frowned slightly, as if she was thinking about the reason for this division in her mind.

Then she couldn't wait to ask, "I wonder what types there are?

Your Highness, please tell me in detail. I am very curious, just like a cat scratching me."

Zhu Gang crossed his arms and said methodically: “First, local retail transactions.

Miaoyun, look at this city, the grocery stores, cloth shops, butcher shops, and drug stores in the streets and alleys are all businesses doing local retail business.

For them, the focus of taxation is the difference between the final selling price and the cost of the goods.

Merchants must record the product name, quantity, selling price and purchase cost for every retail transaction. The purchase cost here is more than just the purchase price.

You also have to take into account short-distance freight, handling fees, and reasonable losses that are allocated to the cost of each item.

Then, based on this difference, we will calculate the tax according to the retail industry tax rate we set.”

As he spoke, Zhu Gang raised his hand and pointed at the bustling street scene outside the window, as if those shops were right in front of him.

He then gave an example: "For example, a cloth shop sells a piece of cotton cloth, and the purchase cost is one tael of silver.

The selling price is one tael and five cents of silver, and the tax rate we set is 10%, so the commercial tax for this transaction is five cents of silver.

In order to prevent merchants from raising prices arbitrarily, the government will also check the average market price.

If the price is unreasonably high, we have to recalculate it to ensure that the tax is fair and just."

Xu Miaoyun listened carefully and blinked her eyes, as if she was silently calculating in her mind. After a moment of silence, she continued to ask: "Your Highness has indeed considered everything, what about local wholesale transactions?

I guess there must be some other considerations.”

Zhu Gang raised his head slightly, stroking his chin gently, and after thinking for a moment, he said, "The taxation method for local wholesale merchants is different.

After all, wholesale transactions are large in volume and amount, so the key is to control the wholesale price difference and transaction scale.

Merchants who engage in wholesale operations must record in detail the total purchase volume, purchase price, as well as the total wholesale volume and selling price.

Miaoyun, let me give you another example.

It is just like a grain merchant who buys in 10,000 dan of grain at a price of five taels of silver per dan.

Including some miscellaneous costs, each stone costs five taels and two cents of silver.

Then, 5,000 shi were sold wholesale, with each shi selling for six taels of silver.

With this calculation, the gross profit is four thousand taels of silver.

According to the 8% tax rate we set, we will have to pay a commercial tax of 320 taels of silver.

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The government requires them to keep transaction contracts and account details for easy reference at any time, in order to prevent people from falsely reporting and evading taxes."

As he spoke, Zhu Gang was still writing numbers in the air, and he looked as if he was possessed by an accountant.

Xu Miaoyun nodded thoughtfully after hearing this, and praised with a smile: "Your Highness's plan is really detailed and has taken every aspect into consideration.

But Your Highness, Miaoyun has a doubt.

Although it can prevent false reporting for wholesale merchants to record so many accounts, wouldn’t it be too cumbersome for those small wholesalers?

They already have limited manpower, and if they do this, they will probably have to spend a lot of energy on this account, which will affect their business."

Upon hearing this, Zhu Gang frowned slightly, and his expression became more serious.

"Miaoyun, although your idea is for the benefit of small merchants, this tax issue is related to the expenses of the royal palace and even more to the fairness of trade in the entire place.

Without such strict requirements, the accounts will be in disarray and false reporting and tax evasion will inevitably occur in the future.

The ones who will suffer then will be the majority of businesses that operate in compliance with regulations.”

Xu Miaoyun disagreed. She shook her head slightly and her tone became serious.

“Your Highness, Miaoyun understands the importance of taxation.

But rules are dead, people are alive!

Those small-scale wholesalers earn their money through hard work.

If we keep busy dealing with these accounting issues, I'm afraid many people won't be able to hold on in the long run.

This may not be a good thing for the prosperity of our trade."

Seeing Xu Miaoyun's persistence, Zhu Gang felt a little annoyed.

He paced back and forth in the room, and after a while he said, "Then what do you think should be done?
We can't relax the taxation rules just to take care of them, right?
Once this door is opened, it will be difficult to close it in the future."

Xu Miaoyun lowered his head and thought for a while, then slowly said: "Your Highness, Miaoyun thinks that we can ask the government to send people to regularly assist those small wholesalers in sorting out their accounts.

This will ensure that the accounts are clear without putting too much pressure on them. What do you think?"

Zhu Gang stopped and stroked his forehead.

He thought for half a cup of tea before he frowned and said slowly, "Miaoyun, your idea is good, but the government has limited manpower.

If everyone helps to sort out the accounts, how will we deal with the many other matters?

This really... makes me feel a little embarrassed."

The two of them were in a stalemate for a while, and the atmosphere in the study became somewhat solemn.

(End of this chapter)