Personal Taxes
Schwerdt's personal tax structure is oriented on the equalisation of income. At the same time, the scheme seeks to encourage individual effort and accomplishment. These two objectives often seem at cross purposes. Yet, both are essential to the success of Schwerdt's social market economy.
Major components of the personal tax system are the personal income tax and retail sales taxes. Income taxes are levied on employment wages using a progressive scale. The sales tax is charged for all goods sold except food, clothing, medicines, and housing.
Business Taxes
Taxes on business concerns provide the largest share of funding for Schwerdt's progressive social wellbeing programs. The value-added tax (VAT) is levied on the amount of value added to goods and services at each step of the business process. Enterprises also pay tax on profits, which is determined by subtracting permitted capital reinvestment from business revenues remaining after covering costs of legitimate business expenses.
Customs and Duties
Schwerdt collects taxes on imports and exports as part of its overall government revenue scheme.
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