My father is Chongzhen? Then I have no choice but to rebel.

Chapter 138 There’s nothing we can do, it’s all Chongzhen’s fault for giving us too much!

Thinking of this, Zhu Cilang spoke again:

"So, those five million dan of grain were really sold for fifteen million taels of silver?"

Xia Dewu replied with a smile:

"Reporting to His Royal Highness, it is indeed so! Moreover, I have already sent the 15 million taels of silver to the rear warehouse of the Eastern Palace."

Zhu Cilang didn't say anything else, but he suddenly felt a little funny.

Because if these 15 million taels of silver were counted, the amount of silver he could mobilize now would be as much as 140 million taels!
This does not include the 30 million taels previously allocated to the Ministry of Revenue.

He has so much money now that he doesn't know what to do with it!

Most of this money was contributed by the eight imperial merchants, nobles and civil service groups.

Look!

It’s not that the Ming Dynasty was short of silver, it’s just that Chongzhen didn’t know where to find it.

After coming to his senses, Zhu Cilang immediately sent people to check the current grain reserves of the Ministry of Revenue.

After getting the exact news, he secretly breathed a sigh of relief.

The Ministry of Revenue's current food reserves are enough to feed the entire capital and the 300,000 disaster victims for four months.

The food from overseas will be delivered in about two months. Not only that, the sweet potatoes and potatoes will be mature in three months. In addition, there will be grain taxes to be levied in the summer, so there is no need to worry about food for the time being.

If circumstances permit, Zhu Cilang also plans to exempt Shandong, Henan, Shaanxi and Sichuan from taxes this year.

During this period, Xia Dewu stood respectfully by and did not leave.

It’s just because Zhu Cilang didn’t let him go.

At this moment, Zhu Cilang looked up at Xia Dewu and asked again:
"Tell me, aren't those merchants who bought the grain earlier anxious? Aren't they worried about having to hold onto the grain and not being able to sell it?"

"After all, food can't be stored for too long, right?"

Xia Dewu replied respectfully:

"In my opinion, they shouldn't be in a hurry right now. They don't know the Crown Prince's plan, so they think the capital will soon run out of food."

"I sent someone to inquire before, and they only sell one or two stone of grain every day. Once they sell it, they say there is no more."

"So I'm wondering, should we take some measures against them?"

Zhu Cilang touched his chin without saying anything, as if he was thinking about something.

After a while, he looked at Xia Dewu again and asked:
"When you were the shopkeeper at the British Mansion, how much business tax did each shop have to pay every month?"

Xia Dewu was a little embarrassed when he heard this, but he didn't dare to hide it, so he had to answer truthfully:

"Reporting to His Royal Highness, the shops in the Duke of Ying's Mansion have never been required to pay taxes..."

By the end of his words, Xia Dewu's voice had become so low that it was almost inaudible.

But it doesn’t matter, because Zhu Cilang still heard the words “no need to pay taxes”.

Zhu Cilang was not too surprised by this. After all, Duke Ying was the most noble man in the Ming Dynasty. How could his family's shop pay taxes?
But in fact, in the Ming Dynasty, you had to pay taxes when opening a shop.

This tax was called market stall tax, which was similar to the business tax in later generations.

Market stall taxes were established in all 33 prefectures, counties and districts of the Ming Dynasty.

During the reign of Emperor Renzong of Ming Dynasty, the tax rate was 5% to %. During the reign of Emperor Xuanzong of Ming Dynasty, the tax rate increased fivefold to %.

However, don't be fooled by these figures, the actual taxes collected are far less.

Zhu Cilang had checked the tax situation in this area before. In one year, the total business tax collected by the 33 prefectures, counties and cities in the Ming Dynasty was only about 35 taels!

There is only a mere 7 taels in the capital.

This situation is obviously extremely unreasonable!
Zhu Cilang had learned about the relevant information before. In the capital alone, there were more than a hundred types of shops.

Among them, there are 3560 upper and middle-class shops and 5750 lower-class shops respectively, and there are countless lower-class shops, that is, service industries such as barber shops, snack stalls, repair shops, and small businesses such as mobile vendors.

Adding up all these shops, there are at least more than 10,000 of them!
Some people may think this number is a bit exaggerated, but don't forget that it is based on the entire Beijing population of 120 million.

Most of the people living in the capital do not make a living by farming, but by doing small business, so it is normal to have so many shops.

But then again, with nearly 7 shops, why is it that only taels of business tax are collected each year?

The reason is very simple. Those shops either evade taxes, or rely on officials in the court to exempt taxes, or are opened by noble families themselves, and then the officials embezzle some of the money. Isn't that the case?

It seems that a new set of tax rules needs to be formulated.

Then, Zhu Cilang looked at Xia Dewu and said calmly:
"Let's put the past aside for now. Next, we need to find a way to reform the current business tax. What are your thoughts on this?"

Xia Dewu's heart tightened when he heard this. He quickly waved his hands and replied in a slightly panicked manner:

"Your Highness, taxation is of vital importance to the foundation and operation of the imperial court. Although I have several years of experience in business, I dare not say much about taxation!"

Xia Dewu knew very well that taxation was the lifeblood of the imperial court, and it was not for a small official like him to comment on it.

Although he had been in the business world for several years, he was just a rookie in the officialdom. Naturally, he did not dare to speak easily, for fear of saying something wrong and causing serious consequences.

And if something goes wrong in this regard, I'm afraid he won't be able to save his life!
He still hopes to live a few more years!
Seeing how nervous he was, Zhu Cilang said in a very gentle tone:
"You don't have to be so reserved. Relax a little. I just want to hear your thoughts. The final decision will still be made by me."

"Whether you are right or wrong, I forgive you."

In fact, Zhu Cilang also understood in his heart that, according to common sense, matters such as tax reform should be discussed with officials from the Ministry of Revenue. After all, this is what the Ministry of Revenue is supposed to do.

But as we all know, the commercial tax system in Ming Dynasty is in chaos, and the Ministry of Revenue is obviously not immune from the consequences.

In this case, how can Zhu Cilang still rely on them?
Xia Dewu has been in the business world for many years and must be quite familiar with the minds and methods of businessmen. He may be able to offer some practical suggestions to help him reform the business tax.

After hearing Zhu Cilang's words, Xia Dewu finally felt a little relieved. After thinking for a moment, he asked cautiously:

"Your Highness, I wonder what percentage you plan to increase the sales tax to this time?"

Zhu Cilang thought for a moment before answering:

"I would like to raise the sales tax to the same level as the commercial tax, that is, 10% tax and 2% tax. What do you think?"

During the reign of Emperor Xuanzong of the Ming Dynasty, the tax rate was as high as one-sixth of the original rate. In comparison, Zhu Cilang felt that raising it further would not be a big deal.

After all, these merchants haven't paid taxes properly for almost two hundred years, so it's time to bleed them a little.

Xia Dewu frowned, thought for a moment and then asked:
"Then, Your Highness, is this 10% tax based on the total price of goods, sales revenue, or the net profit of the shop?"

Zhu Cilang was stunned for a moment by this question. It must be said that he had not thought about it so much.

After a brief pause, Zhu Cilang said:
"How do you feel about collecting a tax of 22% of net profit?"

Xia Dewu smiled bitterly and shook his head, saying helplessly:
"Your Highness, please forgive me for being blunt, but if we levy the tax based on net profit, I'm afraid it will still be difficult to collect the full amount."

"Because merchants often try to falsify their accounts and inflate their profits to reduce taxes, the actual taxes the court can collect won't be much higher than it is now."

Zhu Cilang immediately realized the interests involved. Collecting taxes based on net profits would indeed make it easy for businesses to falsify their accounts, thus affecting tax revenue.

After a brief thought, Zhu Cilang's eyes suddenly lit up.

"In that case, how about charging 20% of the purchase price as sales tax?"

"For smaller shops, for example, if the total purchase value in a month is less than ten taels of silver, the tax will be levied at a rate of one tenth of the total value."

"For amounts above ten taels of silver, the tax rate will be levied at two-tenths."

"From now on, these shops must report their purchases to the court, and then pay taxes based on the reported purchase quantities."

"If the goods are not reported, it will be considered tax evasion, and the court has the right to cancel the store's license and confiscate the goods."

"For those shops that do not need to purchase goods, such as pawnshops and money houses, a fixed tax will be charged."

"In addition, small businesses like handicrafts, which already have very low profits, such as blacksmithing, farm tool production, furniture manufacturing, and service industries like food stalls, repair shops, and mobile vendors, can simply collect a certain monthly business tax."

"But it must not exceed 20% tax, and it can even be lower. In short, it must not affect their normal lives."

The sales tax is completely different from the goods collected before.

Goods tax can be exempted to a certain extent, but business tax cannot. No matter how much money you make, you have to pay tax.

It’s not that he, the prince, wants to compete with the people for profit, but that the small vendors are involved in too many things.

For example, occupying land for business, polluting the environment, food safety and hygiene hazards, disrupting market order, and so on.

The purpose of collecting taxes from them is also to slightly control the number of small vendors for better management.

At the same time, after hearing these words, Xia Dewu began to think secretly in his heart.

In the past, most of these merchants did not have to pay taxes because they had connections behind them. However, if a commercial tax of 12% is levied on the purchase price, it will undoubtedly be a considerable expense.

But now that he is a court official, he must of course consider this matter from the court's perspective.

From the perspective of the imperial court, this tax collection system is perfect!
So immediately afterwards, Xia Dewu hurriedly bowed and said:
"Your Highness, I believe this plan is feasible!"

"These merchants haven't paid taxes in who knows how long. It's time to make them pay a little."

"However, I still have some concerns, and I hope Your Highness will plan a response plan in advance."

Zhu Cilang looked at Xia Dewu curiously and asked:

"Tell me."

Xia Dewu continued:
"Your Highness, if the imperial court really imposes taxes in this way, the merchants will surely be dissatisfied and may take some actions to boycott, such as raising prices or even going on strike."

"I wonder how His Royal Highness will deal with these situations then?"

When Zhu Cilang heard this, he didn't react much, but looked calm instead.

Because he had already considered these issues.

You should know that in ancient times, there was also a department specifically responsible for managing prices. This department was under the Five Cities Military Commission. It was called: the City Commission!
The Municipal Bureau is equivalent to the Market Supervision and Administration Bureau in later generations, and is basically responsible for all matters related to business.

It is responsible for everything from setting prices for goods to maintaining order in the market.

The city commissioner also has a group of younger brothers under him, that is, minor officials at various levels.

For example, the bailiff is the security guard of the market, who is responsible for maintaining order and preventing disturbances.

The chan people are responsible for collecting taxes.

Xu Shi is equivalent to quality inspection, preventing merchants from selling unqualified goods.

Master Jia’s main job is to set prices for goods.

There are hundreds of petty officials like this in total.

And until now, the Municipal Bureau is still operating normally, and it adjusts the prices in the capital every three days to prevent prices from being too high.

This is also the reason why prices in Beijing remain stable.

Of course, the main reason is that the current food reserves in the capital are still sufficient. If the food reserves in the capital are insufficient, the municipal government will not be able to control prices.

In addition, there is another reason.

That is, Zhu Cilang clearly stipulated in the previous imperial edict that merchants cannot raise the prices of goods due to rising commercial taxes.

For example, if the original value of the goods was ten taels of silver, and the merchant had paid two taels of silver in commercial tax, in order to make up for the loss, he still planned to sell the remaining eight taels of silver for ten taels of silver.

In this way, he pays no commercial tax, and the ones who suffer are the customers who buy his goods.

But this kind of behavior is absolutely not allowed. As long as someone reports it or it is discovered, the merchant will face a heavy fine, and the fine is almost equivalent to half the value of the goods.

To put it bluntly, Zhu Cilang wanted the merchant who owned this batch of goods to pay the commercial tax instead of passing it on to others!

Therefore, as long as the city government is in place, prices in the capital will not rise too much.

Zhu Cilang planned to merge the Municipal Taxation Bureau into the Ming Dynasty Taxation Bureau. After all, they were doing the same thing.

In addition, Zhu Cilang actually has his own set of strategies to deal with price increases and strikes.

As soon as this plan is implemented, price increases and strikes will no longer exist!

Thinking of this, Zhu Cilang looked at Xia Dewu and said:
"This is another reason why I asked you to come. In addition to the Ming Royal Chamber of Commerce, I plan to open another shop."

"This shop is different from the Royal Chamber of Commerce. It doesn't sell any expensive items."

"Instead, they specialize in selling daily necessities for ordinary people, such as rice, salt, oil, sauce, vinegar, tea, fruits, vegetables, pickles, and so on."

"The specific types and quantities will be determined by you based on the actual situation."

"But one thing must be guaranteed, that is, the items sold are indispensable to people's lives."

"What do you think of a shop like this?"

Xia Dewu was a little confused at first, wondering what was the point of selling these products with meager profit margins?
After all, how can these things make money as much as glass, soap, toilet water, and perfume?
The price of just one bottle of perfume is worth several stone of rice.

However, suddenly at this moment, Xia Dewu seemed to have suddenly thought of something, his eyes lit up, and he suddenly realized:
"Your Highness, I understand! Do you want to open a shop like this to stabilize prices and ensure the basic needs of the people?"

"This way, even if merchants attempt to resist the tax policy by raising prices or going on strike, we can ensure that there will be no chaos in the capital."

Zhu Cilang smiled and said:

"You are indeed very smart. In your opinion, can such a store be successfully opened?"

"Of course!"

Xia Dewu agreed readily at first, then as if remembering something, he said with a slightly worried look:
"However, Your Highness, please forgive me for being blunt. If you want to open a shop like this, the quantity of goods required must be extremely large."

"Take rice, for example. I roughly estimate that the daily loss is at least dozens of dan, possibly even more."

"In this case, the scheduling and supply of goods will probably be a very difficult problem."

Zhu Cilang didn't care about what he heard, but said calmly:

"If an ordinary merchant were to run a shop like this, it would be extremely difficult to dispatch the goods. However, this shop is run by me, so this kind of thing wouldn't happen."

"When the time comes, I will definitely give you the maximum authority and support to ensure the smooth operation of the shop."

"Also, you have to remember that this shop isn't just for the convenience of the people; more importantly, it's to play a key role in stabilizing prices in the capital."

"For example, if a shop that previously stockpiled grain wanted to raise the price of grain from three taels of silver per dan to five taels of silver per dan, then this shop would still sell the grain at three taels of silver per dan."

"By then, people will naturally stop buying food from them, and their food prices will naturally drop!"

"In short, this shop is the benchmark and standard for price stability. Other shops must use this as a reference standard if they want to continue operating."

"I've already thought of a name for this shop. Let's call it the Daming State-Owned Shop. For the time being, it will be under the name of the Daming Imperial Chamber of Commerce. You will be fully responsible for its management."

Originally, Zhu Cilang planned to name this shop Daming Supply and Marketing Cooperative, but he felt that the name was too novel and advanced, and worried that the people of that era would find it difficult to understand and accept it, so he simply changed it to Daming State-owned Shop.

Its nature is the same as that of the state-owned stores in the 1980s and 1990s.

Basically, as long as people heard this name, they would know that this was a shop opened by the imperial court itself.

After all, apart from the imperial court, who would dare to hang the words "Da Ming" on a plaque?

Ming Dynasty state-owned shops
Xia Dewu muttered the name softly, and for a moment he felt it became more and more novel.

The look he gave Zhu Cilang also became a little different. He had never imagined that the high and mighty Crown Prince in front of him actually had such a good business acumen.

If he were not the crown prince, he would surely have become a big businessman.

After coming to his senses, Xia Dewu hurriedly complimented:
"Your Highness is truly ingenious. This single move has completely resolved the issues of rising prices and the merchants' strike. I am sincerely convinced!"

Although this statement may seem like flattery, it must be said that Zhu Cilang still benefited greatly from it.

With a slight smile, Zhu Cilang continued:
"This matter is urgent and should be addressed sooner rather than later. You will head to the most prosperous area of the capital and select a suitable shop. Whether you choose to buy or rent it is entirely up to you."

"Also, recruit a group of reliable servants. Be sure to instruct them to treat customers with courtesy and friendliness, and never cheat on weights or measurements. After all, this concerns the reputation and image of the court."

"You can withdraw the required funds directly from the East Palace."

"Don't worry, Your Highness. I'll do it right away!"

Hearing this, Xia Dewu responded quickly, with a look of determination on his face.

Then, Zhu Cilang gave Xia Dewu some detailed instructions on some things he needed to pay attention to and let him leave.

Not long after Xia Dewu left, the Minister of Revenue Ni Yuanlu hurried over to ask for a meeting with some memorials.

Because Chongzhen had previously clearly announced in the court that the commercial tax reform would be fully entrusted to the prince, he came specifically to understand Zhu Cilang's thoughts and plans on the matter.

There was no way. Since the court session ended today, many officials had been urging him to quickly implement the commercial tax reform so that they could receive double their salaries as soon as possible.

Some people even went directly to the Ministry of Revenue to urge him, and even some officials of the Ministry of Revenue hinted to him in both explicit and implicit ways to quickly reform the commercial tax.

Ni Yuanlu was annoyed by these people's urging and had no choice but to come to Zhu Cilang quickly.

Even though the previous commercial tax reform has been implemented, you should know that the Ming Dynasty’s commercial taxes were not limited to commodity taxes.

Other taxes such as salt tax, tea tax, mining tax, port tax, transit tax and business tax are all commercial taxes.

If commercial tax reform is to be implemented, it is impossible to reform only this type of tax. Ni Yuanlu is well aware of this. He came here today to see what Zhu Cilang meant so that it could be implemented in a timely manner.

It’s really helpless when you think about it.

In the past, whenever it came to collecting taxes, the officials were all mute, but now? They were all pushing him like crazy!

There’s nothing we can do about it. It’s all because Chongzhen gave too much.

Take him for example. According to the current prices, he could have received 20 dan of rice, 30 taels of silver, some cloth and pepper, and about 50 strings of Ming treasure notes every month.

To be honest, if he didn't have a lot of wealth, it would be difficult to support his family with this money.

But what happens after the commercial tax reform is completed?
He could receive about 60 shi of rice, 90 taels of silver, some cloth and pepper, and about 50 strings of Ming Dynasty treasure notes every month.

It’s three times more than before!
Although he is not short of money, it must be more satisfying to receive a salary that has tripled!

After all, who complains about having too much money?

At this moment, the eunuch in charge of delivering the message finally appeared at the gate of the East Palace again.

"Sir, the Crown Prince invites you!"

The young eunuch said respectfully.

Ni Yuanlu nodded.

"Thank you, little eunuch!"

Afterwards, Ni Yuanlu followed the young eunuch into the Eastern Palace.

After seeing Zhu Cilang, Ni Yuanlu hurriedly bowed and said:

"I have met His Highness the Crown Prince."

Zhu Cilang nodded slightly, then ordered someone to bring a chair to Ni Yuanlu and serve tea, then asked:
"Master Ni, I believe you are here this time to discuss the business tax issue, right?"

"Exactly."

Ni Yuanlu nodded in response, then asked cautiously:

"Your Highness, I'm genuinely confused. What kind of government agency is the Daming Tax Bureau? And how are the officials therein structured?"

"The Ministry of Revenue originally had a yamen dedicated to collecting commercial taxes, but the official rank was low and their power was relatively limited."

"Now that Your Majesty is suddenly planning to establish the Ming Dynasty Taxation Bureau, I, an old minister, am completely bewildered. I don't know how to begin assigning positions and assigning officials, so I have come to seek Your Majesty's advice."

Before getting down to business, Ni Yuanlu felt that he had to first figure out what kind of government office the Ming Dynasty Tax Bureau was.

After all, in name, this government office has the power to dispatch troops, so he cannot help but take it seriously!
(End of this chapter)