Tax Reform: consultation
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by Ceska Narodni Banka
Our current major monthly expenses are as follows:
Czech Investments approx 100 gold per month operating cost
Czech Investments upgrade to Q5 200 gold one-off cost
MPP Hungary renewal 30 gold
MPP US renewal 30 gold
Currency market regulation required reserve c50 gold
Our current gold balance is 15 gold, with 50 gold tied up in market regulation (i.e. it's not spent, but we need it to keep the currency market balanced)
Projected income from sale of the Q4 DS (anticipated to be produced in1-2 weeks) 160-200 gold.
Without the Q5 DS upgrade the budget balances. But if we want to upgrade to a Q5 DS company, this month we need to earn approx 200 gold.
This might seem a tight picture right now, but Q5 DS will sell for around 220-250 gold each and will cost us around 100-120 gold to produce. And we can produce them at about the rate of 1 per month. So we can anticipate a revenue of around 100 gold per month in the future.
To meet this budget ambition I would like to reform the tax regime to achieve the following:
1. Reduce import taxes to a level where external competitors will enter the market (thereby raising income) - at the moment, nobody will buy an import license to our country when the import tax is 80%!
2. Raise taxes that will bring us in foreign currency which we can more easily turn to gold without undermining the value of the czk.
I would like for citizens to submit their ideas to the discussion on the forum:
http://www.ecz.phorum.cz/viewtopic.php?f=10&t=90
This will form the basis of a decision about a new profile of taxation.
Franz Kafka
President
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Comments
I think, we don´t want Q5 DS now.
About taxes, I think we should make lower import tax. Protectionism is dead idea and we´re small country and because it I think, the bigger competition can help us. Our economy is good setuped and we´re country what can still prosper at foreign competition. So I believe to free market without protectionism, I believe that our companies can export to other countries and I believe that foreign companies can export to Czech Republic. It´s simple, for example we have really cheap gifts, wood, food..., but a little expensive moving tickets, so we can export gifts, wood, food... and some foreign company can import there moving tickets and both parties would be happy.
@radim - agreed, some protectionism ok - but at current we don't need it so high.
Q5 DS - I think I could sell it to Israel - they have just recovered some territories and need to defend it. So instead of using the first one for ourselves let's make ourselves some money.
Big competition, but small number of workers and buyers...
I just want to know who will give 20 golds for licence to sell peoducts in CR, a state with 200 active players?
It will cause even more lower payments in CR, maybe, as product prices will continue to fall and companies will have to lower payments.
BUT, if we are country with cheap working class and with cheap products, we should try to force other countries, like Spain, to lower a little more import taxes and VAT, (like Portugal have for weapons), so that we can offer them our own cheap products. We dont need competition because we allready have low product prices and good amount of companies without workers.
I just want to know, from where or who you are getting such inconsiderated ideas, radim...
I'm not looking to totally eradicate protecting our markets - nor to instigate total exploitation of the workers. But we do need to raise revenue for our country. One way is to maximise tax reveue from importers and from domestic companies.
We are also working on the population size issue - I hope in the next term we can make a very big push on this too.
FK
Red Baxter: You´re a little double personality, you want stronger regulations of prices but you have fear from competition.
If some foreign company don´t want buy market licence there, situation still the same, but it can´t be worse.
About my ideas, I´m just right-winger. Capitalism is only one idelogy what ever prosper. Socialism, communism and other ideologies showed many times, they´re just utopies and his result was terrible.
BTW: When you ever attack against me, can you tell me where you got your ideas. At USSR??? 🙂
@all please stop the arguments - use this discussion to suggest ideas about how to change the taxes. You can see the current profile here: http://www.erepublik.com/en/country/economy/Czech-Republic" target="_blank">http://www.erepublik.com/en/country/econ[..]blic
I want ideas of how we can best raise revenue and encourage more effcient production. e.g. perhaps the best way to raise income is through higher income tax? Or perhaps we should be raising VAT?
FK: Higher import tax will not get us some money, because with hight import tax, nobody will export there so we will not get money from taxes. But with lower import tax (for example 10😵, we will get more (if one product cost 10 CZK, we will have 1 CZK+VAT from each product).
I think, we should make a little higher VAT, if we change VAT from 1% to 5%, nobody feel something, but we will get 5times more each product.
I agree with radim - if we need higher incomes we can change income tax and VAT from 1% to 3%, if it will be not enough we can change it to 5% but its maximum.
The quickest way to increase revenues is through an income tax increase. I am working on exporting to other countries to improve cashflow. (still mapping out a plan before open hiring) So I like protectionist policies that are currently in place. Most of our companies look to need protectionism to stay profitable right now.
My vote would be to continue protectionism and increase income and VAT taxes to help fund the government. Just my two cents