In the winter of the fourth year of Yan Ning, the entire capital was filled with joy.

Not only because the country has been peaceful and prosperous in recent years, and the people are living a good life, but also because the good news coming from the border regions has made the entire capital very happy.

With the Western Regions and the Snow Regions pacified, it meant that the entire Great Gan Kingdom would have virtually no border troubles.

People in the Northwest and Southwest regions no longer need to live in fear due to border troubles!

With border troubles eliminated, domestic affairs also became more stable.

The tax-free policy for several consecutive years allowed the people of the entire country to recuperate and gradually recover.

Not only in the capital, but also in the surrounding areas, people are able to eat their fill and stay warm.

The people even had extra energy to have children.

The number of children in the capital city gradually increased.

Even within the palace, several more children were born during the four years of Yanning.

These children are also Li Xin's children.

After entering the capital, although Li Xin did not have the three palaces, six courtyards, and seventy-two concubines like emperors of previous dynasties, he still took in a few concubines according to custom.

These concubines also bore several children for Li Xin.

Looking at the toddler learning to speak, Li Xin couldn't help but smile.

The eldest son, Li Mu, is growing up and will be able to attend school after the New Year.

"His Majesty,"

At this moment, a guard walked over and said, "Grand Secretary Yu and the others have arrived and are waiting in the Wuying Hall."

"good!"

Li Xin nodded, handed the child in his arms to the wet nurse, and turned to walk towards the Wuying Hall.

After walking to the Wuying Hall, looking at Grand Secretary Yu Maocai, the newly appointed Second Grand Secretary Liu Jingxuan, and others, Li Xin asked with a smile, "Has the plan been drafted?"

"Yes, Your Majesty!"

Yu Maocai nodded and said, "The new tax system plan was drafted by Mr. Liu. After discussions within the cabinet, a preliminary plan has been formed."

"Mr. Liu, you've worked hard."

Li Xin nodded slightly, then opened the document in his hand and looked at its contents.

Liu Jingxuan is also an old man in Dongning. He was originally the steward of the Prince Xin's Mansion in Dongning. Later, he served as the prefect of Dongning and was transferred to the position of governor of Silla.

Back in Dongning, a well-developed plan for tax reform was already in place. Now that he has been transferred to the capital to serve as the Second Grand Secretary, this matter has been specifically entrusted to Liu Jingxuan.

"His Majesty,"

Liu Jingxuan began by saying, "Based on the farmland conditions in various regions over the past few years, it is tentatively proposed to divide all farmland in the country into five grades. The highest grade will be taxed at 120 cash per mu, the upper-middle grade at 110 cash per mu, the middle grade at 100 cash per mu, the lower-middle grade at 90 cash per mu, and the lowest grade at 80 cash per mu. The ungraded wasteland, tidal flats, reed marshes, etc., will be taxed at 40 cash per mu as a new land tax."

"After the reform of the land tax, all the original taxes and levies, such as corvée labor, apportionment, rent, miscellaneous taxes, surcharges, land tax, fire loss tax, and poll tax, were abolished."

"The new land tax reduction policy consists of three parts."

"Firstly, for those who have served in the military, their new land tax will be permanently reduced by half. For those who have died in the military, their new land tax will be permanently exempted."

"Secondly, families with three children will have their new land tax reduced by 30% permanently. Families with four children will have their new land tax reduced by 40% permanently, and so on, until the new land tax is permanently exempted."

"Thirdly, the original inhabitants of the border regions who can learn the Daqian language and recognize the Daqian characters will have their new land tax reduced by 20%. Those who join the army will have their new land tax reduced by 20%. Those who intermarry with Daqian people will have their new land tax reduced by 20%."

"Fourth, for families with members who have migrated to the border, the new land tax for family members remaining in the family, excluding the migrants, will be permanently reduced by 20%. If one person migrates, the tax will be reduced by 20%; if two people migrate, the tax will be reduced by 40%, and so on."

"Fifth, other newly established reduction and exemption items by the imperial court. Other meritorious personnel and those who have made great contributions to the country will have their new land taxes reduced or exempted as appropriate."

"The above five tax reduction and exemption policies can be combined simultaneously until the new land tax for families is completely exempted!"

Listening to Liu Jingxuan's explanation, Li Xin nodded slightly and said, "That's right! These new land tax reform plans are indeed very good! Collecting taxes based on the amount and grade of land significantly reduces the collection and payment procedures. Furthermore, reduction and exemption policies have been established for different situations. It's truly excellent!"

"His Majesty,"

Liu Jingxuan said, "In this way, it probably won't be long before no one in the whole country pays land tax. After all, with so many tax reduction and exemption policies in place, the people will definitely try their best to meet the conditions to reduce or exempt the new land tax."

"If no one pays the land tax, then no one pays it!"

Li Xin smiled and said, "Look at these past few years, even after the five-year exemption from land tax, the imperial court's annual revenue is still considerable. Moreover, there's the Qingyu Trading Company and several other state-run enterprises that contribute large profits every year. New taxes such as industrial and commercial taxes, salt taxes, and customs duties also generate substantial revenue. We don't lack land tax revenue now!"

"Nowadays,"

Looking at Yu Maocai and Liu Jingxuan, Li Xin continued, "The purpose of formulating the new land tax is also to establish preferential policies for the Da Gan army among the people, as well as policies to encourage childbirth. Furthermore, it's to accelerate the integration of the original inhabitants of the border regions into the Da Gan Kingdom as soon as possible. In short, the new land tax isn't about collecting taxes, but rather about facilitating the implementation of various policies that our Da Gan Kingdom urgently needs. For example, the policy of 'settling people in the border regions.' As you said, the people will try every means to seek conditions to reduce or exempt them from the new land tax. Once those conditions are no longer available, they will take the path of 'settling people in the border regions.' With this reduction or exemption policy, our other policies can be implemented more effectively!"

"That's absolutely true!"

Yu Maocai nodded and said, "In recent years, with the elimination of land tax and poll tax, the court's annual revenue, after deducting annual expenditures, has even resulted in a surplus. In the past two years, while land tax has been abolished, salt tax has increased significantly. Recently, newly appointed officials conducted in-depth research in rural areas and discovered that, with surplus money, people are buying a lot of various goods, such as salt, cloth, and ironware. Sales in rural areas have increased dramatically. This is why commercial and industrial taxes and salt taxes have remained so high. From this perspective, even after the new land tax reduction, people are not entirely without taxes; it's just that direct taxes like the new land tax are no longer levied. The goods they purchase include commercial and industrial taxes, salt taxes, and so on. This can be considered indirect tax payment!"

"Grand Secretary Yu is truly remarkable; he saw the crux of the matter at a glance!"

Li Xin couldn't help but laugh and said, "That's exactly the point. Although the new land tax will be abolished, people will have more income and will naturally buy more products, which will indirectly increase tax revenue!"

"I see!"

Liu Jingxuan suddenly realized and nodded, saying, "Next year is the last year of the five-year tax exemption. Next year, we should have officials at all levels start promoting the new land tax system and the tax exemption policy."

"good!"