Lumina will be primarily using a consumption/sales tax, which is a tax on the purchases between individuals and businesses.

The consumption tax rate will be approximately set to around 20-30% and only charged on purchases between individuals and businesses.

Income will not be taxed.

The benefits of this tax system are:

• Simplicity: A consumption tax is relatively simple to implement and understand, compared to complex income tax systems. This could make it easier for the government to administer and for citizens to comply with.
• Efficiency: A consumption tax can be efficient to collect, as it is levied at the point of sale and can be automatically collected through the use of digital technologies. This could reduce administrative costs and improve compliance.
• Transparency: A consumption tax is transparent, as the tax rate is clearly visible on the price of goods and services. This could make it easier for citizens to understand the tax system and hold the government accountable for its tax policy.
• Economic growth: A consumption tax can encourage economic growth, as it does not tax income or savings. This could provide incentives for individuals and businesses to invest and save, leading to increased economic activity.

Since it is automatically collected, the tax will ensure compliance and remove the need for tax returns and lengthy forms for citizens to fill out.

Rebates for low-earners will be offered to citizens.

Citizens will also be able to choose how part of their money is allocated towards government services, enabling them more direct control over what the government spends its money on.

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