Tax Increase in New Eden

CCP will, at times, let the lore drive changes in the game, or at least pretend to do so.  The local chat blackout in null sec and its indefinite duration was pitched as a Secure Commerce Commission directive to preserve the supplies of “Quantum-Entangled 4-Helium” which are, within the game, said to power the “liquid router network” on which com channels rely.

Now CCP is going the same way with a tax increase.

Last week a CCP posted an in-game news report in which CONCORD proposed the establishment of a “New Eden Defense Fund” in order to raise funds for in order to support the resistance to the Triglavian invasion.

This was followed today by a news report that the CONCORD Assembly had passed the resolution to raise taxes, specifically:

Substantially increased tax and broker fees are to be levied on interstellar market transactions by the Secure Commerce Commission, following today’s passage in the CONCORD Assembly of the “New Eden Defense Fund Act YC121” (NEDFA). SCC markets will see base transaction tax increase from 2.00% to 5.00%, while the base brokerage fee will rise from 3.00% to 5.00%.

Because of the Triglavians you will now be paying more in taxes on the items you sell in New Eden.

And you’ll be defending New Eden all the more so now

Over at INN Rhivre wrote a post calling the first post a sign that a tax hike was coming, though she suggested that her conclusion might just be tinfoil.  But it turned out to be anything but.

In New Eden the broker’s fee and transaction tax come out of the seller’s take, so expect seller’s to boost prices to reflect the increased cut CONCORD plans to take.

The transaction tax will hit everybody.  That is the fee collected on every market sale in NPC stations and player owned Upwell structures.  Boosting from a base of 2% to 5% is a big markup.  At least Accounting, the skill you can train to reduce the transaction tax… because of course there is a skill to do that… lowers the rate by percentage.  With the tax change there will also be an update to the Accounting skill.

With each level of Accounting you have trained reduces the tax by 11%, so those of us with Accounting V trained up get a 55% reduction so will see the fee go from 1% to 2.25%.  If you are a seller in New Eden and do not have Accounting V yet, this might be something to invest those free skill points into.

The broker’s fee side of this will hit those trading in NPC stations, so it will be more of a Jita tax.  Player owned Upwell structures set their own broker’s fee. (So far at least.) The primary way that player hubs like the Tranquility Trading Tower Keepstar in Perimeter lures sellers… at least sellers of PLEX and skill injectors… away from Jita is with lower broker’s fees.

Now the Perimeter market will have an even larger advantage over Jita.

The Broker Relations skill, which can reduce the the broker’s fee in NPC stations (but not at player owned structures), is not as generous as the Accounting skill.  Currently the Broker Relations reduces the broker’s fee by .1% per level trained, so that Broker Relations V knocks off .5%. With the proposed change CCP wants to make that a .3% change per level, boosting the reduction with Broker Relations V to 1.5%.

With the broker’s fee going from 3% to 5%, those of us with Broker Relations V will see a drop from 2.5% to 3.5%.  That should pull some additional ISK out of the economy.

(The EVE University Wiki has more on market related skills as they stand before this proposed change)

And pulling ISK out of the economy seems to be the likely goal of CCP.  In the monthly economic report, the transaction tax and broker’s fees are the two largest ISK sinks in New Eden.  Together in June they pulled about 21.5 trillion ISK out of the New Eden economy.

June 2019 – Sinks and Faucets chart

That amount was approximately one third of the total amount removed from the economy in June.

This should make for a couple of interesting monthly economic reports in the coming months.  When the July MER comes out we will see the effect of the local blackout in null sec, which ought to have an impact on NPC bounties, by far the largest ISK faucet.  And, presuming this tax change is implemented soon (it will be live on the test server tomorrow), the August MER ought to see a boost in the amount of ISK removed via these two sinks.

Also of interest will be the breakdown of where broker’s fees end up.  In the June MER, 78% of broker’s fees were collected in NPC stations, thus were taken out of the game, while 22% were collected in player owned Upwell structures and thus stayed in the economy and were simply put into the pockets of the structure owners.

June 2019 Broker’s Fee Split

If all else remains equal, that balance should tip more towards the NPC side of the equation.  But if the tax drives people to sell in player owned structures, it could very well move the other way. (And no, I don’t know why neither of those numbers, or their total, match the broker’s fee number on the sinks chart.)

All things to keep an eye on in the upcoming reports.

In the mean time, you and I and everybody else will likely soon be paying more for our market transactions.  Whether or not this is part of Hilmar’s “Chaos Era” updates has not been indicated.

Related items:

5 thoughts on “Tax Increase in New Eden

  1. Nosy Gamer

    Given that blackout has really reduced the largest isk faucet, what’s going to happen if such large sinks are opened up at the same time? This could get ugly.


  2. Wilhelm Arcturus Post author

    @Nosy – If we follow the logic, a pinch on income should make things less expensive on its own. That won’t take ISK out of the economy, but make rearranging who ends up holding the ISK a different story as people won’t spend as freely on ships and modules and such. Less ISK chasing goods and all that.

    The tax increase will make things more expensive, further exacerbating the reduced spending, which could, in turn, tank prices even further.

    Then there is the null sec embargo of raw materials, which already seems to have boosted mineral prices a bit, which implies that supplies are down or demand is up. Then there are the high sec gank fleets, the above and beyond the usual MiniLuv efforts, which are getting coalition-wide pings to join now, which could be driving demand.

    Meanwhile PLEX and Large Skill Injector prices are both down, which implies that demand is down on that front.

    I don’t know. CCP might need to hire and economist again. Wanting a chaos age and a dystopian hellscape is one thing, but letting the economy swing too much might make things worse than any crazy plans Hilmar or Falcon could come up with.

    Liked by 1 person

  3. SynCaine

    Upset of the year that the first comment isn’t Dins stating this is clearly just CCP catering to the Goon RMT cartel to prop up the high-sec trading cit.


  4. Wilhelm Arcturus Post author

    @SynCaine – Dins cannot sustain two narratives at once. Right now he is wetting himself because CCP is wrecking null sec and he is dreaming about them banning Goons outright, so he’ll simply ignore anything that might dispute that view.


  5. Wilhelm Arcturus Post author

    I might take back that increase in mineral prices. Maybe it was just a market fluctuation, but last week around Amarr tritanium was selling for upwards of 6.50 ISK per unit, which is a decent price historically. That has since fallen below 5 ISK per for buy orders. Something happened.


Comments are closed.