After a moment of pause, Wu Dashu said, "For the lowest tier, you need to pay 20 taels of silver."
"With this permit, you will receive a brown wooden token and be allowed to set up a roadside stall. The size of the stall cannot exceed 5 square meters. The tax you need to pay is 2% of your annual net income."
"For the middle tier, you need to pay 80 taels of silver. You will receive a red wooden token and be allowed to open 1 roadside stall and 1 small store. The size of the store cannot exceed 50 square meters. The tax you need to pay is 5% of your annual net income."
After he finished his words, the merchants were stunned. It took them a while to process the information.
"Sir, why does the higher tier need to pay more tax? Shouldn't the more we pay for the business permit, the lower the tax?" one of the merchants asked.
Hearing this, Wu Dashu raised his chin and replied, "This is called cross-subsidization."
