Chapter 36 Privatization (Part 2)
Ouyang Shuo did not want to explain everyone's doubts.
"After privatization, the finance of the territory must be independently accounted for. Therefore, I decided to establish a Finance Department to be responsible for the financial affairs and tax affairs of the territory after privatization. The Finance Department operates independently, and Sihai Bank will also be included in the jurisdiction of the Finance Department. The Finance Department will also be held by Cui Yingyou."
Everyone then suddenly realized that the foreshadowing was this. The Secretary for Finance and the Director of Sihai Money House was the real God of Wealth. The importance of status was comparable to that of the Director of the Administration.
Cui Yingyou couldn't help but be excited. The conversation between Ouyang Shuo and her yesterday was still vivid in my mind. Unexpectedly, in just one day, she unloaded the burden of the Material Reserve Department and turned to the more important Finance Department. She stood up slowly and said frankly: "I will live up to my brother's entrusting!"
Ouyang Shuo nodded, "After the establishment of the Finance Department, the first priority is to establish an effective tax system. Here, I will first set a general tone for everyone to discuss. The specific implementation rules and the loan rules of Sihai Bank need to be formulated."
Cui Yingyou nodded to show her understanding.
"Simply put, taxes can be divided into two types: agricultural tax and industrial and commercial tax. Agricultural tax is relatively single, and the tax rate is set as 30 tax one. Industrial and commercial tax is divided into tariffs and business taxes. Tariffs need to be expanded in the territory, set up passes, and trade with the outside world before they can be collected. Therefore, at this stage, business tax is mainly levied. In order to encourage the development of handicrafts and commerce, the tax rate is also set as 30 tax one."
"As an important financial source for the territory's future, tax rates must be maintained. If you have any opinions on various tax rates, you can speak freely."
Fan Zhongyan stood up and said calmly: "The lord is generous and loves the people as much as his son. The tax rate set is already the lowest level in history. Xiwen's only concern is whether such a low tax rate can maintain the daily expenses and military expenditures of the territory?"
"Sir, don't worry. One is the first to help keep the wealth of the people and reduce the burden on the people. Second, the low tax rate is more conducive to the rapid development of the territory's economy. As long as we make the cake bigger, even if it is a small share, it will still be considerable. On the contrary, a small piece of cake will still be small even if it is half taken. More importantly, the territory has another source of income, that is, industries that are not in this privatization sequence. These industries belong to the territory, and the profits generated will be paid to the Finance Department. Therefore, the government does not have to worry about the finance of the territory at all." Ouyang Shuo replied.
When Fan Zhongyan heard that the adults wanted to hand over the profits of industries such as salt farms to the Finance Department, he felt relieved. With his character of worrying about the country and the people, the low-level taxes were exactly what he expected. What he was worried about was that the adults would transfer these industries to the lords' personal ownership. In that case, if the territory was really short of money, then in the end, he would still have to grab them from the people.
This is the limitation of historical figures. Even with Fan Zhongyan's wisdom, he would not understand that the power of the territory is the power of the player. Therefore, player lords like Ouyang Shuo do not care whether they have their own small treasury.
After Fan Zhongyan asked, Zhao Dexian stood up, "Sir, my subordinates have something unknown. For farmers, do they need to pay agricultural taxes and also pay farmland rent?"
"Director Zhao was too worried. The territory would provide each farmer with farmland farming for free. The property rights of the farmland belong to the territory, and the right to use and income of the farmland belong to the farmers themselves. In order to ensure the interests of the farmers, land purchase and sale are not allowed, and land annexation is not allowed. Correspondingly, the territory does not allow farmers to reclaim farmland privately. All farmland reclamation can only be responsible for the agricultural reclamation department." Ouyang Shuo briefly explained and continued: "As for the division of farmland and the number of farmland acres that each farmer can obtain, the agricultural reclamation department needs to be responsible."
Zhao Dexian nodded to show that he understood.
Hearing Ouyang Shuo's arrangements for the farmer, Zhao Youfang, who was newly appointed, couldn't sit still, and then stood up, "Sir, my subordinates also want to know how to collect taxes on fishermen and herdsmen?"
"Director Zhao's question is very good. First, answer the question about fishermen. Let's put it this way, there are two main ways to deal with sea fish caught by fishermen. One is to sell directly in the market, and this method only levies stall tax. In order to ensure smooth tax collection and prevent tax evasion, fishermen must sell fish in fixed stalls and are not allowed to set up stalls privately. The other is to sell them directly to the Material Reserve Department and collect them in accordance with the business tax. For sporadic transactions, no tax is imposed on the territory."
"The taxation of herders is similar to that of fishermen. The difference is that bison is restricted from livestock and cannot be slaughtered and sold privately. It can only be purchased by the Material Reserve Department. For pastures directly controlled by the territory, it is not within the scope of taxation."
Ouyang Shuo knew that there were still many loopholes in such regulations, and some gaps in tax evasion have not been blocked. For example, if a self-righteous herder may think of attaching his livestock to the ranch in the territory, thereby avoiding tax revenue. However, now the Finance Department is newly established and the staff is not complete, so it is not advisable to perform too complicated operations, otherwise it will backfire.
After Zhao Youfang finished asking, Mu Qingsi stood up and said with a smile: "Brother, Qing'er also has questions to ask. If Qing'er bought the tailor shop, then should she continue to sew a set of clothes for each villager as stipulated before? If she wants to continue, who should Qing'er ask for compensation?"
"Qing'er's question is also very good. The work of sewing clothes naturally needs to continue. As for the payment method, there are two options. One is to continue to provide the cloth raw materials by the territory. The tailor shop is only responsible for processing and production, and the territory pays a certain processing fee for the tailor shop. The other is to purchase the cloth by the tailor shop itself, place an order from the tailor shop, and purchase ready-made clothes at market prices."
He continued: "This kind of market-oriented cooperation method is suitable for all kinds of shops after privatization. Of course, after privatization, prohibited items such as arrows and leather armor cannot be manufactured at will, but can only be produced by weapons workshops directly controlled by the territory."
A discussion on taxation lasted nearly an hour and a half. During this period, representatives from various industries and various fields asked questions in their respective fields. Ouyang Shuo answered these questions one by one.
Cui Yingyou, who was sitting next to her, felt very stressed. She put herself in her shoes and thought about it. She didn't know how to answer many questions. At this time, she could only be a good baby and record Ouyang Shuo's answers one by one. After she prepared, she sorted out these answers and wrote them into the work guidelines of the Finance Department. Otherwise, she really didn't know how to carry out her work.
After solving the problems of money houses and taxes, the remaining four things are much simpler. Ouyang Shuo also took a rare laziness and said directly: "When setting wage levels and price levels, the Administration Office is fully responsible for it. After formulating a detailed plan, it can be submitted to me for review. The construction of various types of shops and the issuance of basic welfare is naturally the full responsibility of the Material Reserve Department and the Construction Department cooperates."
Fan Zhongyan, Zhao Youfang, and Zhao Dewang nodded one after another, indicating that they understood.
Ouyang Shuo continued: "Finally, let's discuss the pricing issues of real estate and shops in various places. According to the development characteristics of the territory, in the foreseeable future, the territory will undergo multiple large-scale planning adjustments. This involves the demolition of a large number of real estate and even the demolition of shops. Therefore, before pricing, it is necessary to make a rigid regulation on the property rights of these real estates. In other words, what the villagers buy is only the right to use and income of real estate. As for the land to which the real estate belongs, it still belongs to the territory."
"When the territory needs it, the owner of real estate must unconditionally obey the territory's arrangements and accept the demolition of real estate or shops by the territory. As compensation, the territory will unconditionally replace real estate of the same size as before in the new area."
"So, when we evaluate the prices of real estate or shops, we do not need to consider too much the cost of land use. Taking the primary tailor shop as an example, when building, 40 units of wood and 20 units of stone, plus the labor cost consumed, is the sum of all construction costs. In the market, 20 copper coins per unit of wood and 30 copper coins per unit of stone. Therefore, the material cost of the primary tailor shop is 1,400 copper coins, and the labor cost is priced according to the wage level set by the Administration."
"My opinion is that the price of the property is priced at 1.5 times the construction cost, and the price of the store is priced at twice the construction cost. As for the rent, it is priced at a rental-to-sale ratio of 1:200, which means that the monthly rent is priced at 200% of the total house price."
As soon as Ouyang Shuo finished speaking, Qing'er muttered: "Brother is so unscrupulous. He actually charges him twice the price."
Ouyang Shuo glared at her and explained: "Everyone may wonder why not price according to construction cost? First, we must respect market laws. If we do not make a certain profit, it will easily disrupt the market. Second, it is also to maintain supply balance. If we price according to construction cost, it may cause the price to be too low and there are many buyers."
"For example, a resident courtyard could have lived in twenty people. If the price is too low and a family of three can buy it separately, then there will be a tight territorial housing situation. When it comes to the resident courtyard, I also think of a problem. After privatization, the villagers' requirements for living conditions will be greatly improved. Therefore, the Construction Department must adapt to market laws and flexibly adjust the scale and number of resident courtyards. Build more small courtyards suitable for one household to live in."
Zhao Dewang immediately stood up and said, "I understand!"
"The pricing and subsequent sales of houses and shops will be left to the Administrative Office. The funds obtained will be converted into territorial fiscal revenue and deposited into Sihai Money House."
Chapter completed!