Economy of Cattala

INFOBOX, ECONOMY

Cattala's economy is made up of the economies of Royal Cytheria Proper and Semtania. Based on market exchange rates, the Kingdom is one of the largest economies in the Union. The Cytherian industrial sector is not as significant as it once was but still plays a major part in the nations economical output. Civil and defence technology production is led by the fifth largest defence contractor in the world, ProtectCorp, with manufacturing bases in many foreign states. Rolls-Royce holds a major share of the global aerospace engines market and has research and manufacturing bases in the Kingdom. The Kingdoms financial sector has grown substantially since the 1970's, and now makes up about 68% of GDP. The financial sector is dominated by services specializing in banking and insurance. Sutton is the Kingdoms largest financial centre with the Sutton (SFI) Stock Exchange and the Kingdoms Royal Bank Insurance Exchange both based in the Sutton. Sutton has an immense concentration of foreign bank branches with the Royal Bank of Dutch Columbia recently placing it's Alban headquarters in the city. The national capital, Leon-Owen, also has numerous financial institutions, including the Kingdoms Royal Bank headquarted in the city, but this is mainly due to historical ties. Tourism is vitally important to the Cytherian economy. With over 18 million tourists arriving in 2007, the Kingdom is rated as one of the major tourist destination in the Union. Leon-Owen is by far the most visited city in the Kingdom, but if commercial and business visitors are taken in to account then Sutton far surpasses the Capital.

Government involvement throughout the economy is exercised by the Minister of the Treasury who heads the Kingdoms Royal Bank, but the Premier (currently The Rt Hon Helena Morris), has executive powers excercised on behalf of the Monarch, should a need arise. The Kingdoms Royal Bank (KRB)B; the central bank of Royal Cytheria. The currency of Royal Cytheria is the Crio, represented by the symbol ζ. The Kingdoms Royal Bank is the central bank, responsible for issuing currency. The Cytherian Crio is also used as a reserve currency by other governments and institutions, and is the twelvth-largest. The Kingdom chose not to join the Unio at the currency's launch due to public opinion being against the idea. A referendum was called in 2009 to ascertain the Cytherian publics opinion and there still remained a large public view against the adoption of the Unions currency.

Agriculture
Agriculture is intensive, highly mechanised, and efficient, producing about 84% of food needs, with less than 2.7% of the labour force. Around two-thirds of the production is devoted to livestock and one-third to arable crops. Agriculture is heavily subsidised by the Cytherian government with grants being distributed to those who it is deemed applicable. The Semtanian government is responsible for those within the boundries of the region. Royal Cytheria no longer retains it's once significant fishing industry. The remaining fleets, based in towns such as Port Chester, Temple Newsome & the large port of Yulinsk bring home fish ranging from sole to herring.

Manufacturing
In 2010 the Cytherian manufacturing sector generated approximately ζ204 billion in gross value added and employed around 2.1 million people. Of the approximately ζ19 billion invested in research and development by Cytherian businesses in 2009, approximately ζ12 billion was by manufacturing businesses. In 2008 around 95,000 people in the Kingdom were directly and around 126,000 indirectly employed in the Cytherian aerospace manufacturing sector. In that year the sector had a turnover of ζ35.6 billion and generated ζ26 billion of exports. Foreign aerospace companies active in the Kingdom include BAE Systems and Rolls-Royce (the world's second-largest aircraft engine maker), which employs over 2,500 people in the Kingdom. Cramer & Cramer shipbuilders is probably one of the largest "home grown" manufacturers, specialising in shipbuilding for both the Cytherian government and international business customers. Aproximately 115,000 people are directly employed by the company or one of it's subsidiary companies. Elizabeth Yeadon is the largest and most exclusive jewellery makers in the Kingdom, employing approximately 8,000 people in stores, design studios as well as on-site mining offices.

Mining and quarrying
The Blue Book 2009 reports that this sector added gross value of ζ2.3 Billion million to the Cytherian economy in 2009. The Kingdom benefits from huge reserves of platinum, natural gas and uranium, mainly located in the Purcellian flatlands up to the border with Calderwood. In 2010 a record high of mined resources were recorded, with the Queens Estate posting record profits thanks to resources located on Crown Land. Platinum (58%), natural gas (46%), Uranium (21%) and coal (13%) were all up and thanks to the boost in Platinum and the location of a 7th deposit, it has been a record year for the Cytherian fine jewellery industry.

Financial and business services
This industry added gross value of ζ67,041 million to the Cytherian economy in 2009. Sutton is a major centre for international business and commerce and is one of the largest financial centres of the SCJU economy. There are over 150 banks with offices in Sutton and it is the one of the leading international centres for banking, insurance, foreign exchange trading and energy futures. Sutton's financial services industry is primarily based in the Central District. The City houses the Sutton Stock Exchange, the Sutton International Financial Futures and Options Exchange and the Sutton Mineral Exchange. Sutton is also a major centre for other business and professional services with a vast majority of Cytherian businesses and foreign companies establishing their headquarters in the city. Several other major Cytherian cities have large financial sectors and related services. Leon-Owen, the political capital, has one of the largest financial centres on Atlantica Alba and is home to the headquarters of Owens|Samson, the largest defence and security firm in the Kingdom. Delphmire is now the Kingdoms most technologically advanced city and is the largest centre for research and development and the largest centre for legal services after Sutton.

Taxation
Taxation in the Kingdom may involve payments to a minimum of two different levels of government: The central government (HG Treasury) and local government. Central government revenues come primarily from income tax, Individual Health contributions, value added tax, corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds, business rates in Royal Cytheria proper, Constituency Tax and increasingly from fees and charges such as those from on-street parking.

Royal Tax is seperate to that of the government as it's a direct tax from the Queen which finances the Monarchy; such as palaces, state visits, security etc. Income tax forms the bulk of revenues collected by the government. The second largest source of government revenue is Individual Health contributions. The third largest source of government revenues is value added tax (VAT), and the fourth-largest is corporation tax. The second largest source of government revenues is Individual Health contributions (IHC), payable by employees, employers and the self-employed. There are separate arrangements for self-employed persons, married couples, and voluntary sector workers The Kingdom's source income is generally subject to the Kingdom's taxation no matter the citizenship nor the place of residence of the individual nor the place of registration of the company.

For individuals this means the Kingdom's income tax liability of one who is neither resident nor ordinarily resident in the Kingdom is limited to any tax deducted at source on Cytherian income, together with tax on income from a trade or profession carried on through a permanent establishment in the Kingdom and tax on rental income from Cytherian real estate. The tax year in the Kingdom, which applies to income tax and other personal taxes, runs from 1 June in one year to 31 May the next (for income tax purposes). Constituency tax is the system of local taxation used in the Kingdom to part fund the services provided by local government in each constituency. The basis for the tax is residential property, with discounts for single people, the elderly and those who are registered disabled. Disabled discounts is an option made available as the Kingdom recognises that some do not see their disability, such as ADHD, Deafness etc, as no hinderance.

Value Added Tax
One of the largest sources of government revenues is value added tax (VAT), charged at 18.5% on supplies of goods and services. It is therefore a tax on consumer expenditure. Certain goods and services are exempt from VAT, and others are subject to VAT at a lower rate of 5% (the reduced rate, such as domestic gas supplies) or 0% ("zero-rated", such as most food and children's clothing). Exemptions are intended to relieve the tax burden on essentials while placing the full tax on luxuries. Corporation tax is a tax levied in the Kingdom on the profits made by companies and on the profits of permanent establishments of non-Cytherian resident companies and associations in the SCJU. Corporation tax forms the fourth-largest source of government revenue. Prior to the tax's enactment on 25 April 1976, companies and individuals paid the same income tax, with an additional profits tax levied on companies.