1581-1582 Nyland Federal Assembly

[Seperallis]

Tax Reform Act of 1581
Assembly Bill 1581.101
Drafted by: Broderick Baird (NL) Submitted by: Broderick Baird (NL) Submit Date: 28 Ochtyr, 1581 Hearing Date: Revision Date: Summary: This bill amends the Tax Reform Act of 1580 (TRA80) and reforms the VAT tax structure of Nyland. The goal is to reduce the tax burden on poor Nylanders by eliminating certain VAT categories, which have a demonstrable effect on the budgets of lower income households. Section 1: Individual Income Tax Rates Reform I. All individual income falling between the range $0 - $50,000 will have an income tax of 0%. II. All individual income falling between the range $50,001 - $125,000 will have an income tax of 5%. III. All individual income falling between the range $125,001 - $200,000 will have an income tax of 12%. IV. All individual income falling between the range $200,001 - $398,000 will have an income tax of 18%. V. All individual income falling between the range $398,001 - $425,000 will have an income tax of 25%. VI. All individual income of $425,001 or more will have an income tax of 30%. Section 2: Value Added Tax Reform The following tax rates will be applied: I. Standard Rate: 22% II. Reduced Rate: 8% III. Zero Rate: 0% The Standard VAT rate of 22% is applied to all supplies of good or services, unless a specific measures provides for the reduced, zero rate, or simple exemption. Examples of good and services taxable at the reduced rate (8%) I. Food Preparation II. Textbooks for primary and secondary school. III. Cultural goods declared of general interest by the Department of Commerce IV Passenger transport V. Hotel accommodation VI. Health & Hygiene Examples of good  and services taxable at the Zero Rate (0%) I. Exports of Goods II. Intra-Community supplies of goods III. Supplies to ships and aircraft used for international transportation Examples of exempt supplies of goods and services The term “exempt supplies” refers to supplies of goods and services that are not liable to tax and that do not give rise to a right of input tax deduction I. Supply of immovable property II. Medical services III. Finance IV. Insurance V. Betting and gaming VI. Education VII. Foodstuffs VIII. Feminine Hygiene The change will be effective immediately (next fiscal year) Section 3: New VAT Definitions I. "Food Preparation" shall encompass all goods and services where food and drink is prepared for consumption by an company/individual/agency and then presented to a customer as either "ready to cook" or "ready to eat" II. "Foodstuffs" shall encompass any and all consumable items not included in the "Food Preparation" category. III. "Feminine Hygiene" shall encompass all Hygiene products or services whose necessary purpose is extricably linked to the unique biology of women. IV. "Health and Hygiene" shall encompass all goods and services whose primary purpose serves to improve human health and Hygiene that are neither medical in nature, nor included as "Feminine Hygiene." Amendment - Broderick Baird - NL