When the Saintess Arrives, No King Exist-Chapter 667 - 625 Tariffs, Stamp Duty, and Tax Stamps

Putting aside the topic of Black Snake Bay and the Lightning Furnace, Horn quickly brought the conversation back on track.

Horn tapped the table and cleared his throat: "Firstly, I create a budget not because I personally like to plan everything, but to ensure every penny is spent where it truly counts.

Without a budget, we'll fall into chaotic spending—the various lords, monasteries, and even ourselves could waste funds on redundant, ineffective, and corrupt projects.

If this continues, no matter how much income we have, it will all be eaten away."

He paused for a moment, glanced at Moliat, and continued: "The core of budgeting is to spend money on what truly matters."

Horn picked up a draft budget priority list from the table: "I won't dictate how to spend money, but will set up a priority list, starting with the most crucial: military spending, government formation and administrative expenses, infrastructure development."

"Translate, translate." Moliat twirled a feather pen in his fingers.

"Military spending is the top priority." Horn's tone turned serious, "In no later than three years, Leia Kingdom will attack with an army ranging from fifty thousand to seventy thousand, while at full count, we only have twenty thousand soldiers.

We need to expand the army, train, equip, and even build border fortresses. All this requires money, urgently needed funds, do you agree?"

"I agree."

He paused, then continued: "Second, government formation and administrative expenses. You know, within the Empire, our army is large relative to the population, and without an efficient government, these troops might even collapse internally."

"But their income shouldn't be too high, or it would squeeze the interests of the army," Moliat reminded.

"Don't worry, I know what I'm doing." Horn patted his chest to reassure Moliat, "Third, infrastructure, to ease the conveyance of decrees and trade, and also to facilitate military mobilization."

"Building roads and dams is expensive, are you sure this income is enough?" Moliat touched his chin.

Horn lightly coughed, his tone slightly softened, "But local taxes alone are not enough. We also need a new form of taxation."

Moliat raised an eyebrow, "What do you mean?"

"Tariffs. We must uniformly collect tariffs, no longer allowing local lords to set up checkpoints and collect taxes along the way," Horn continued, "Every main road and waterway entrance needs to set up inspection stations and border tax offices."

"How is this different from local lords setting up checkpoints to collect taxes?" Moliat crossed his legs, "Anyway, the lords pay taxes to us as well."

"Do you remember when we attacked Xia Lvcheng (Feiliu Castle) from the water, it took only three days to get from Damp Dock to Xia Lvcheng, but why did it take almost seven or eight days from Joan of Arc Castle to Rapids City, even though the waterways are almost the same?"

Moliat's youthful face slightly wrinkled, like a big tiger with a kitten's head pondering, "Because of the transfer... Ah, I get it."

It must be said, unlike when Horn had to explain everything in Prague, a capable person understands things quickly.

The biggest issue with a lord setting checkpoints along the way isn't repeated taxation, but the hindrance of circulation!

Take Seching selling pigs as an example, each checkpoint requires a check, and if there are many people, queuing might be necessary, possibly even staying overnight.

By the time one passes through all the checkpoints to Joan of Arc Castle, even the fattest hog would've slimmed from hunger.

From Joan of Arc Castle to Rapids City, numerous low bridges were built along the way, obstructing ship passage, forcing merchants to disembark and transfer, only being allowed to leave with goods after paying a bridge crossing tax.

This is also the reason why Horn's journey to Rapids City by boat was so slow, whereas the Hotam County area, having significant Church power, can suppress the nobles, allowing merchants to pay a unified bridge tax at Feiliu Castle.

"My suggestion for tariffs is to establish a dedicated independent department for management."

"A dedicated independent department? Is it necessary?"

"Tariffs are very important." Horn earnestly told Moliat, "They're the foundation of unifying the Kingdom."

"Why? Isn't it just ordinary taxes?" Moliat leaned back in the chair, disdainfully sipping a cup of tea.

"Tariffs convert local bridge and road taxes into a unified collection at the border, which raises a question: This is public revenue, who manages and distributes the tax?"

Moliat smelled the scent of power and immediately sat up straight, "I'll do it."

"Can you handle it?" Horn sighed helplessly, "Do you have enough talent under you? Enough tax officers and accountants?"

"Damn it, share some with me." Moliat supported himself with one hand on the table, leaned over to Horn, and hugged his head, "You already have so many people, share a bit with me, how about it?"

"You have your noble talent pool." Horn, his head pressured, struggled to say, "Those sons of nobles who retired from ecclesiastics, the children of minor nobility, they're all your talent pool."

"They can handle bandits, repair roads, manage agriculture just fine, but to let them oversee taxation..." Moliat shook his head disdainfully.

"That's why I propose joint management." Horn stood up from beneath Moliat, "However, I require full jurisdiction over the tariffs in Langsande County. This is a political issue, you understand what I mean."

"I understand." Realizing the core of the customs union, Moliat quickly caught on.

Horn intends to quietly make Black Snake Bay a part of their territory.

"But the problem is, how do we regulate smuggling?" Having grasped the importance of tariffs, Moliat grew serious, "Surely we're not building a wall along the border?"

"No, no, no, building tax stations on major roads will suffice. My opinion is to have the public self-regulate, shifting the cost onto the traders themselves."

Horn pulled out a document titled "Trial Measures for Tax Stamps and Stamp Duty" and handed it to Moliat.

The plan was simple.

Suppose a merchant named Tom brings 50 barrels of wine valued at 50 gold pounds across the border. He first registers the quantity, value, and vessel at the border tax station, pays a 5-gold-pound tariff, then receives three tax stamps and receipts.

Whenever he docks, the tax officer at the port checks his tax stamps and receipts. Without them, additional taxes must be paid.

During transactions, the seller must attach one of the original tax stamps with the premium tax sticker and give it to the buyer, keep one for himself, and give one to the tax officer.

Suppose Tom sells the 50 barrels of wine to a local seller Jerry for 60 gold pounds (premium of 5 gold pounds), Jerry will demand Tom to produce tax stamps and receipts.

If, after the transaction, it's found there's no tax stamp, the supplementary tax due isn't the premium's 10% (i.e., 0.5 gold pounds), but 5.5 gold pounds.

If Jerry fails to fulfill his oversight duty, he would have to pay the tax for Tom!

Similarly, Jerry's downstream will make similar demands; otherwise, he'd face up to a 6-gold-pound supplemental tax.

At the retail level, assuming Jerry is a city's beverage wholesaler, he must exchange the tax stamps for stamp duty stickers.

Only wine with a stamp is legitimate. If a tavern discovers unstamped wine bought from Jerry, it can report it.

The whistleblower will receive 20%-35% of the tax evaded, and through book tracing, any tavern that bought unstamped wine must also pay back taxes.

Of course, this isn't a perfect process but a dynamic game process.

If the amount is small, naturally no one would offend a distributor over trivial money; but if the amount is large, at most, they'd take the money and settle in another city.

Inevitably, some small smuggling might happen, but compared to large-scale taxation, the smuggled part is tolerated by Horn.

After all, the tax collection cost would exceed the tax revenue, and Horn wouldn't engage in losing deals.

"I generally agree with this budget." Unknowingly, Moliat had exchanged places with Horn, sitting at the report seat across from Horn, "But many regions haven't achieved Hundred Households District restructuring yet, what do you plan to do?"

"Old regions, old methods; new regions, new methods." Horn spread his hands, "Anyway, by next summer, the entire Thousand River Valley should have achieved permanent leasing rights."

"And what about tomorrow's financial meeting?"

"Still the old script: I first drop the price, you disagree, then we argue, you leave in a huff, I also leave, Catherine comes to invite me, and then Jeanne goes to invite you, how about that?"

"Those old folks will be frightened out of their wits." Moliat couldn't help but laugh, "The dwarf mine owners and workshop masters of the Steel Guild are all counting on your farm tool orders."