Tuesday, 10 Thermidor 186 14:38 LMT
Parliament Makes Tax Changes
by Michael O'Rourke
CH'TAALA, L'NHRAEI (LNN) – The Senate approved, 40-6, a major revision of the Commonwealth's tax laws today, following last week's 972-28 passage by the Assembly. President Macpherson has said he will sign the bill. All of the Assembly members and Senators from the I'riuu worlds voted in favour, with the opposition coming from members of the Labour and Socialist parties.
Under current law, every person arriving in the Commonwealth must pay an arrival tax of one shilling, paid at the immigration facilities at each shuttleport. There is also a sales tax on all goods and services of 1d 6ø (one penny, six half-farthings) per pound, or approximately 0.7 percent. While each business must send the amount once a year by 15 Messidor, the cost is usually passed along to the consumer.
Any person wishing to start a business must apply for an identification number, which the Treasury must grant within 30 days. Despite the sales tax's minor requirements, many business owners did not like the Commonwealth having such extensive records.
The new bill completely abolishes the sales tax along with its associated record-keeping requirements, leaving no Commonwealth regulations besides copyright, trademark, and patents. Several member worlds have regulations in certain matters, but not L'nhraei or the other worlds in the I'riuu system.
"This is a welcome change", said Tim Offenbrand, head of the L'nhraei Manufacturers Association. "We admit it's not much compared to other nations, particularly the Federation, and that's why companies choose to locate here, but it's always been possible that Parliament would abolish automatic approval and delay or refuse it for certain types of businesses. Nobody should have to ask for permission to start a business. Let the market determine what businesses are needed and which are not."
To make up the revenue, the arrival tax is increased to ten shillings, still payable to immigration. "While 10s may seem a bit high, it is less than the arrival and departure taxes in other nations", said Rhialov tr'Khei (Li-Selene). "It's usually not noticed, since the taxes are included in the price of shuttle tickets. An increase like this would probably go unnoticed elsewhere, or generate complaints not about taxes, but about ticket prices."
One Senator opposing the bill, Richard Grazier (S-New Providence), feared the bill would hurt travel. "Who wants to begin their trip by handing over half a pound? Some people will certainly choose to go elsewhere. Plus, the sales tax grows with the economy. The number of travellers does as well, but at a much lower rate. The Commonwealth will lose out on a lot of revenue under this bill."
Assembly member Diana Scheller (Li-L'nhraei) replied to Senator Grazier. "Revenue isn't the point. The Commonwealth will have more than enough money to support its military, which everyone knows is what almost all of the tax money is used for. This bill finally frees the people of the Commonwealth to make a living in whatever manner they choose without first needing government approval."
The arrival tax increase takes effect on 1 Fructidor. All businesses will be required to pay sales tax next year on sales in Messidor and Thermidor only, the last time they will have to do so.