Tuesday, October 19, 2021

The Tax Holiday Is Over In EVE Online

Today CCP ended the tax holiday in EVE Online. Of course, the devs didn't just revert the sales tax and broker fees in NPC stations. A few changes were made.

In the Grand Heist release, the base Sales Tax and Brokers Fee in NPC stations were each cut in half, going from 5.0% to 2.5%. In place of the previous numbers, taxes will be changing to the following structure:

Base Unmodified Taxes:

  • Sales Tax: 2.5% -> 8.0% (Previously 5.0%)
  • Brokers Fee: 2.5% -> 3.0% (Previously 5.0%)
  • Total Taxes: 5.0% -> 11.0% (Previously 10.0%)

Minimum Taxes (Modified by Skills, Standings, etc.):

  • Sales Tax: 1.125% -> 3.6% (Previously 2.25%)
  • Brokers Fee: 0.5% -> 1.0% (Previously 3.0%)
  • Total Taxes: 1.625% -> 4.6% (Previously 5.25%)

This change shifts a higher percentage of the tax division toward the sales tax instead of on the order placement, permanently reducing the cost-pressure associated with listing orders by moving the cost into the sales tax taken out upon purchase by another player.

If I were cynical, I'd say that the push of funds is an effort to cater to people buying ISK through the PLEX system. 

Just for fun, I looked up the changes implemented during the Blackout in the summer of 2019. 

Changes to sales taxes and broker fees:

  1. Maximum Sales Tax increase from 2% to 5%.
  2. Minimum Sales Tax increase from 1% to 2.25%.
  3. Maximum Brokers Fee increase for NPC stations from 3% to 5%.
  4. Double the total maximum taxation from 5% to 10%.
  5. Increased total minimum taxation on NPC structures from 3% to 5.25%.
  6. Increase the minimum taxation on player owned structures by 125% from 1% to 2.25%.

Changes to tax associated skills:

  • Accounting – Increase in reduction of sales tax from 10% per level to 11% per level.
  • Brokers Relations – Increase in reduction of costs associated with setting up a market order from 0.1% per level to 0.3% per level.

The total benefit from skills will increase from 2% (current benefit) to 4.75%, which translates to a total tax reduction (including standings benefits) of 47.5% instead of the current 40%.

Since the pre-Blackout era two years ago, the taxes at NPC stations have changes as follows:

Base unmodified taxes:

  • Sales Tax: 2% -> 8%
  • Brokers Fee: no change at 3%
  • Total Taxes: 5% -> 11%

Minimum Taxes (Modified by Skills, Standings, etc.):

  • Sales Tax: 1% -> 3.6%
  • Broker Fee: 2% -> 1%
  • Total Taxes: 3% -> 4.6%

I'm not sure how much of a benefit to the economy the overall tax hike is in increasing the ISK sinks. I also don't know enough to know the impact on citadel owners who use their structures as market hubs. But I assume the taxes serve as a cap on what players can charge in citadels. The next few days listening to the talking heads in the EVE media on the subject should prove interesting, if not enlightening.

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