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The Economist ~ Import Taxes

Day 1,916, 06:42 Published in United Kingdom Poland by Spite313





Dear friends,


Welcome to the first of nine planned crossover articles between The Economist and The Unity Party (TUP), which is a political party here in the UK. This month I’m Party President of TUP, and it’s my goal to increase the ingame profile of the party in such a way as to inform and help UK citizens without hammering on the usual boring recruitment propaganda.

This is part of a new project, called “The University”, whereby we’ll be trying to involve and educate our members, and any other players who want to be involved, through lectures (like this article) and ingame discussion via tutorials. Please note there will be no recruitment involved in this, there will be no requests from us for you to join or do anything else. You also don’t need to be TUP to lead or help out in the project, so if you’re interested in being a Tutor, please let me know!





This first lecture is going to be focused on the economic side of the game, and specifically on imports and exports. A lot of the data I’m using in this article has been provided by MagicHereos, who is TUP’s tech guru.


So what are import taxes

We’ll be starting this article with the basics- what are import taxes? Import tax like all taxes are levied by congress, using the administration panel. Import taxes apply to all goods- so you can tax raw materials, food and weapons. Import taxes only affect goods sold using an export licence- in other words if you have non-British citizenship and are selling to the British market. Import Taxes are cumulative, so they combine with VAT. For example, with 10% VAT and 10% import tax, a £10 gun will take £2 in tax. This is important when you’re working out whether it’s financially viable to export abroad.



How do I export to other countries?

It’s a less used feature these days, because many countries have very high tax, but you can sell your goods in other markets. When you start eRepublik you’re automatically given a licence to the country you live in- probably the UK for most of you. If you move citizenship, you will need to buy a licence to sell to your new country- this is the most likely condition most of you will get one under. Licences cost 20g each, so it’s not a light decision to make.

To access your storage screen, press CTRL+S on your keyboard, or go via your profile.



You will see a box like this below your storage. This is where you can sell your products. Under your market button (where the UK flag is) you can see a little button. Normally this will say “purchase licence” or something, but mine is a bit different because the admins gave you 1 licence per org you used to own when they were dissolved, so I have them already. When you click this it asks you to choose the country you want, then click “buy market licence” to acquire it. At this stage you can change the flag to your new licence, and begin selling!



OK, so I want to export, where should I sell to?


These days the markets are very tight, but there are some tips I can give you. First of all you have to analyse the markets. For this I have a google doc sheet which calculates the prices of current weapons on sale, the tax, and the profit margin. It’s possible to use scripts like eRepublik Advanced (for chrome & greasemonkey) which do the same thing, though less well in my experience. Alternatively you can just grab a spreadsheet and do it yourself, like me.




Here you can see my sheet. It shows you the prices of weapons before and after VAT, Import Tax and both. It calculates the difference between the cheapest sale price in the world (usually Brazil, China, Poland or Serbia) and the local price. This means you don’t even need to have a Q7 company to profit- you can simply buy and sell other people’s guns. As you can see, if you have some capital you can make profits- provided the guns sell.


Judging your market

Markets can be confusing. For example, Denmark seems to be very profitable, until you look at a map and realise nobody can access the market to buy your products because the country doesn’t exist 99% of the time. Similarly countries like Norway & Israel have very small populations, are frequently occupied and thus selling large amounts of weapons is impossible there. What you are ideally looking for is mid-sized countries with low tax rates, reasonably high turnover and a lack of domestic supply. With only one licence to use, your best bet is somewhere like Belgium which though small has a reasonable rate of sales and a decent market. You won’t sell loads, but enough to make the 20g back over time.

If you have a little bit more money you can have 5-6 licences for countries like Chile, Australia and Slovenia, which you can see are profitable at the minute. This however is dependent on the market at the time- demand rises during wartime, or during domestic shortages. It could be that all those countries have price drops tomorrow, and the export licence is useless for a week or two. That’s why exporting is really quite a gamble, and unless you have a lot of resources risking countries like this can be a mistake.



Wait a minute, what if I produce my own guns?


If like me you produce weapons yourself (or at least have the ability) you need to calculate first of all whether it’s profitable to do so. The labour cost (for workers) is the smallest part of the cost of making weapons- with wages around 10 currency (cc), the cost per gun of production is between 0.5cc and 1cc depending on your bonuses. The cost for raw materials is currently 0.03cc per gun, which means that a full Q7 gun costs 6cc to produce using raw materials. If you work as a manager, this is the only cost of course, but using workers you need to add 0.5-1cc onto that for your labour costs. So that means a Q7 gun costs (in simplistic terms) 6.5cc to produce at a minimum. Anything less than 6.5cc sale price and you are losing money by producing them. There are still good reasons to sell at below this price- for example if the market has a saturation of WRM, or you want to subsidise the market, or you just need money quickly. In fact I am currently making a loss on my own weapons production, but it’s easier to shift Q7 guns than WRM, and my storage isn’t large enough to hold more than a few days worth of WRM production.





Now we see that exporting can suddenly become more attractive. I can make more money selling guns to Slovenia through import and VAT than I can selling guns at home. This makes it profitable- and in fact I sell 80% of my weapons abroad to foreign markets. High VAT forces domestic producers to sell abroad, and this benefits foreign nations. With a single currency there is no real need to have high import taxes either- even 100% bonuses only increase the cost of home produced goods by 0.5cc these days- which is about 8% difference in price. Therefore if we changed our import tax to 8%, we’d be on a par in terms of production costs with foreign producers, and we’d have a much busier market and therefore lower prices. The income from this would also mean we could potentially reduce VAT, making our home market more functional. Remember: People are mobile!. There is nothing stopping anyone moving across the English channel into Poland for 20cc, and buying their guns there for 1-2cc less per unit. Our VAT price drives British consumers abroad.





Some people will probably be surprised to hear me taking this position. But it’s a natural and logical step to take. Historically the UK state has been a large one, and has had high taxes. Now no amount of tax is going to provide enough money to adequately supply armies or prosecute war. We need to stop thinking of the state as the main body of defence for the UK, and instead look to our players to provide funding and supplies during war. Already our defence is in the hands of private armies, so we don’t need high taxes anymore. Our main goal should be the maintenance of around 10 MPPs with key allies, and a little surplus to build a safety net or pay for any joint ventures with our alliance if asked. Plus of course, with taxes often less tax can generate more income.


Thanks for reading! Tomorrow we’ll be opening our first seminar groups to discuss this topic, and of course I’d be glad to hear everyone’s opinions on it. All TUP members have been enrolled by default, but if you come from another party or even another country feel free to either message me or sign up in the comments, and I’ll add you to a discussion group.


Iain Keers
TUP Party President







 

Comments

fairgr
fairgr Day 1,916, 06:44

Voted Keep walking

Slingshot
Slingshot Day 1,916, 06:47

frak economy , give us more erepublik wallpapers !

Spite313
Spite313 Day 1,916, 06:48

I just noticed there are some mistakes with the sheet because I forgot to update taxes, but you get the picture

Mary Chan
Mary Chan Day 1,916, 06:59

~hyuu~

Istanbul
Istanbul Day 1,916, 07:17

V

Dr Hugh Jardon
Dr Hugh Jardon Day 1,916, 07:32

I enjoyed that, very informative...

*looks at Talon*

what's your policy on windows Iain?

Dr Hugh Jardon
Dr Hugh Jardon Day 1,916, 07:32

Voted by the way

Strength and Honour

Alphabethis
Alphabethis Day 1,916, 08:08

"Plus of course, with taxes often less tax can generate more income." Keers, please explain that to Danie Fox, I've told him it like 20 times already.

Danie Fox
Danie Fox Day 1,916, 09:20

Sometimes they can, sometimes they can't. If we lower income tax we probably can't, VAT and import tax we possibly can.

Alphabethis
Alphabethis Day 1,916, 08:11

"Therefore if we changed our import tax to 8%, we’d be on a par in terms of production costs with foreign producers, and we’d have a much busier market and therefore lower prices. The income from this would also mean we could potentially reduce VAT, making our home market more functional. ", I've been saying this for months, months. But logic and maths are inmutable, they're simple facts, and they prevail.

eisenmutter2
eisenmutter2 Day 1,916, 08:21

"If you move citizenship, you will need to buy a licence to sell to your new country"

i think you automatical get the licence of your CS-country and don't need to buy it. but unless you bought it it will be gone when you change CS to an other country

(or was this changed by the admins?)

ligtreb
ligtreb Day 1,916, 10:15

Voted, good info as always.

Malkaiser
Malkaiser Day 1,916, 10:22

Well written and thought out article, well done!

Yes I was running some figures and found weapon profitability worrying, I can support this

Mario A Morsik Day 1,916, 11:29

Comment deleted

alexg737
alexg737 Day 1,917, 03:34

LOL

WayneKerr
WayneKerr Day 1,916, 11:33

Others have been saying this for a while now. Nice to see we have the weight of Keers behind such flexible ideas towards taxation.

Alphabethis
Alphabethis Day 1,916, 12:18

my articles are still there, nobody else said it so clearly and so many times. It does not matter, but credit when credit is due.

lancer450
lancer450 Day 1,916, 12:37

Voted. Great job!

Selai Strawberry
Selai Strawberry Day 1,916, 23:42

Nice article... VOTED

Niko Jones
Niko Jones Day 1,917, 00:18

Nice one. Voted. o7

Shone bate
Shone bate Day 1,917, 02:49

good as usual o/

john GB
john GB Day 1,917, 04:07

V & S

IfIWereARichMan
IfIWereARichMan Day 1,917, 09:47

Down with Import Tax and VAT. Always wondered how I could sell abroad.

IfIWereARichMan
IfIWereARichMan Day 1,917, 09:48

Going to start bookmarking these articles otherwise they just disappear.

Jack Jockson
Jack Jockson Day 1,917, 10:08

"This means you don’t even need to have a Q7 company to profit- you can simply buy and sell other people’s guns."

ok, man with the google doc, can you give me exact data for today, providing you have some fresh info, btw your data on Slovenia is a little suspicious here. Slovenia is more protectionistic than your number takes here.
question is

where do I buy? which country?

and top 10 countries to sell is?

eisenmutter2 Day 1,917, 11:55

Comment deleted

eisenmutter2 Day 1,917, 11:56

Comment deleted

Jack Jockson Day 1,917, 12:09

Comment deleted

eisenmutter2
eisenmutter2 Day 1,917, 12:06

look for yourself lazy man...

you see food q5 belarus 2.10cc at the moment with like 0.90cc tax
other countries sell for 0.18cc

that's 1,02cc profit per unit sold

what is there to experimentally test? it is simple math. you just have to look for the good markets yourself - that is the only job left with this "economy"

Jack Jockson
Jack Jockson Day 1,917, 12:10

no, no, I want working examples

no belarussian is buying q5 food for 2 GBP when he can buy q7 for 1 GBP... or is he?

eisenmutter2
eisenmutter2 Day 1,917, 12:20

don't tell me you really think the people here look for the best price on the market then always just one quality of food would sell but that is not really the case... (btw: also no person without mental problems would even consider to buy q7 for 1cc when they can shop in other countries for much less)

eisenmutter2 Day 1,917, 12:23

Comment deleted

eisenmutter2
eisenmutter2 Day 1,917, 12:24

we are playing a game where people are producing q3weapons and selling them with huge money-loss (just to get their storage cleared) instead of just selling the raw and making at least small profit... and you really doubt that the same kind of persons would buy food for a to expensive price on market... are you serious?!

Jack Jockson
Jack Jockson Day 1,917, 12:30

ah but then there's traveling expences which people will avoid.
now you made me test this belarussian food market. i still think if my sandwich sells it will be pure luck.

eisenmutter2
eisenmutter2 Day 1,917, 12:36

buying on the black market via donation you know... either you know one or you just let one of your group travel and this one person will buy for the whole group + real profit is nothing else but luck in the form of money. the lousy small money others call profit is "earned money"...

eisenmutter2
eisenmutter2 Day 1,917, 12:16

well they dont buy much but even so if someone buys you get 1cc per unit profit. of course after a while others see this and lower the bar. then you have to wait for the next oportunity... but i have 5 good licences and have just to look to find some stuff.

but you won't find stuff were you can sell huge amounts with like over 1cc profit per unit for a long time because others are looking for a good deal too and are not stupid. have sold some q5 food in belarus for more than 3cc last time they tampered with the tax there...

Jack Jockson
Jack Jockson Day 1,917, 12:33

i'd still rather have a working example.
I'm not so much interested in dealing empty sandwiches, i want to trade q7 i'll buy some off black market, but where, where do i sell them? i don't have spreadsheets like you ... i mean it's not confidential information is it

eisenmutter2
eisenmutter2 Day 1,917, 12:40

you know it is really work to find good spots and this is the work you have to invest to make some money these days. by telling others where these spots are, they will vannish because when everyone comes and tries to sell the price goes down. then i could just donate you my money and save me the work, would be much easier.

the taxes are displayed ingame and the prices are on market. you can also calculate in your head if you don't want to use excel or other spreadsheets

eisenmutter2
eisenmutter2 Day 1,917, 12:43

so what would you gain if i tell you some spots in public?
1. others will use the information and the spot will be gone
2. after that you will be at the starting point again

you can only make money if you are the first one to find a spot. i only showed belarus because it's not the hot-topseller spot. it is not my hobby to kill my own business

eisenmutter2
eisenmutter2 Day 1,918, 02:26

see i had 200units on the market and today there are just 100 left
meaning i made 100cc profit with 100units q5-food

Jack Jockson
Jack Jockson Day 1,919, 09:59

oh you made it. that's the market I wanted to try out too, balarus

Jack Jockson
Jack Jockson Day 1,917, 10:11

I won't believe your article until I experimentally test this

Mario A Morsik
Mario A Morsik Day 1,917, 14:14

pointless article

Talon Karrde
Talon Karrde Day 1,917, 17:30

Jelly

Mario A Morsik
Mario A Morsik Day 1,917, 17:37

Na I didn't even read the whole thing, waste of time.

 
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