Chapter 435 (1/2)

Written on the contract was that merchants would only be taxed thirty percent of their earnings. There are no other taxes besides that. It was an offer these two could not give up as taxes were usually much higher.

The reason for this is because merchants have no status. Take Jingzhou for example. Although the taxes were never declared, the merchants were actually taxed highly in order to pay the officials. These taxes also come from various checkpoints and presents.

Fatty Liang and Wu De have various stores around Jingzhou, all of which have granaries. These granaries were used to store food and also to avoid checkpoint taxes. For example, to enter Xiangyang, you need to pay thirty percent of the provisions you carry in as tax. You also need to pay ten percent as tax to the gate guard as a gift or you will be accused of various crimes. Another thirty percent when selling to anybody except for the Lord of Xiangyang. Last but not least, another ten percent as a gift to your patron. For example, Fatty Liang has an official that helps him in Xiangyang. This percent had to be paid another ten percent.

After adding in all the other expenses, it would be a miracle if Fatty Liang could even obtain forty percent of his earnings. Even during a year with b.u.mper harvest, he could only obtain thirty percent.

On the other hand, Liu Mang only taxed them thirty percent. As long as they took out a receipt that said that they have already paid tax, they would not be obstructed at all. Of course, there would still be routine inspections. However, if one of the gate guards were to accept bribes, they can be reported to the government.

After counting in the travelling fees and other expenses, they could earn a sixty percent profit. This was a very high percentage which was why the two merchants were shocked.

This was only the first part. The second part was that the merchants that moved to Yangzhou would be exempted from taxes for the first three years.

Exemption from tax! This means they don’t even need to pay the authorities anything. Similarly, they can lodge a complaint to those that came looking for bribes.

Was such a good deal even possible? Fatty Liang and Wu De looked at Jia Xu with doubt.

Jia Xu nodded, alleviating their worries. The two had been worried that Liu Mang would go back on his words but Liu Mang would not do that because by placing them in the industrial areas, they would also be making money for Yangzhou except only for the first three years. If a person’s business failed in the first three years, Liu Mang would not do anything. Their losses is theirs to bear. On the other hand, if the merchants managed to obtain a good business in three years, they would be likely to stay for many more years. Yangzhou would also profit from those additional years.

The third part states that if a merchants were to invite other merchants in, they would receive half a year exemption from tax. The more people they invite to Yangzhou, the longer the duration. However, the condition was that these merchants had business of the same scale or even larger than that of the referrer. Of course, they would still be rewarded if the referred merchant’s business improved to a large scale one like theirs.

Fatty Liang had already started to make his plan. If they were to do business in Yangzhou, he would bring other merchants like him. Jingzhou prohibited selling provisions but not other goods. This is because Jingzhou obtains its wealth from trade. They would not be able to prohibit everything.

The fourth part was about government merchants. The government merchants are those that work for Yangzhou. For example, when Liu Mang wanted to sell cement for the other parts in Yangzhou or even Lujiang to use for buildings, dams and other things. These were all business. Liu Mang wanted a person with the mind of a merchant to operate these things. They would also be in charge of things like negotiating the prices of weapons.

“Wouldn’t you need to force someone to do this?” Fatty Liang and Wu De asked when they read about government merchants. It is explained that government merchants cannot do any other business. All their business properties are to be sold off and they could no longer do any businesses other than the one given by the government. This is to prevent them from using their own position for personal gains.

This was something that may attract small merchants but a merchant that already have large businesses would not want to part with it.

“Haha. Of course the benefits that would be willing to make you part with your businesses would be written at the back.” Jia Xu laughed as he sipped his tea.

Wu De continued to read and found the part where it said that government merchants that did a good job will be given n.o.ble t.i.tles.