Tax system reformed
An Act of Parliament passed this morning has abolished the collection of taxes by the Treasury in peacetime.
The Tax Reform Act 2013 states that from now on, the Treasury can only collect taxes if authorised by Parliament or an Imperial Decree during a state of emergency or war. Town Councils may impose taxes upon their Towns to fund themselves, but these must be “of a fair and proportionate nature”.
The Austenasian tax system was initiated alongside the founding of the Empire on 20 September 2008. Subjects had to pay £1 per month, increased to £2 per month on 6 December 2008, to go towards the upkeep of the Empire. The following month, an extra tax of 20p for each fossil-fuel-powered vehicle owned per month was introduced for environmental purposes.
However, with the annexation of South Kilttown (now known as Zephyria) in April 2009, the collection of taxes was restricted to Wrythe’s population. A similar caveat was made with the annexation of Thanasia in May 2013, and taxes were not even mentioned upon the annexation of Palasia in July 2013. For all practical purposes, the three subjects of Wrythe have borne the burden of the financial upkeep of the Empire since its founding, a state of affairs which has now been put to an end.
Instead of the Treasury funding Government Ministries by distributing annual grants from the money it collects through taxes, Government Ministries shall from now on be expected to find ways of funding their own projects. Should extra money be required, they may apply for a grant from the Treasury, which will henceforth gain money primarily through donations and fund-raising.