VAT Tax
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by NoRealityLife
The issue of the VAT has been brought up a lot lately, and I wanted to address this head-on.
The Current Value Added Tax (VAT) is set at 20%, which is very high and makes people question it. The VAT was setup like this a month ago in order to help eSA as a country.
South Africa has no economy, and it can't and won't as global overproduction is so prevalent and there is a need for a Bot.
For those of you who don't know what "The Bot" is, it's the magical monster that buys your goods listed on the market at or less than a set price.
Example:
The Bot buys Q5 Weapons at a price of 21.60 ZAR.
-The bot will buy your weapons (Not all at once) listed at or less than 21.60 ZAR at the 51st minute of each hour.
The Bot does NOT factor in up to a 20% VAT added on to that initial list price. Which leads to the Current pricing system.
So a Q5 Weapon Price can now go up to 25.90 and still the BOT will buy it.
Here's a simple Pricing Structure of Q5 Weapons:
Brazil Market Price: 21.44 ZAR
South Africa Bot Price: 21.60 ZAR
South Africa Bot Price with 5% VAT: 22.68
South Africa Bot Price with 20% VAT: 25.90
Even with a 5% VAT we are still over 1 ZAR more in our market and not worth buying.
Even with a VAT of 0 we are still more expensive than Countries like eUSA, Brazil, FYROM, etc, by putting our goods on the market at a lower price doesn't prevent the Bot from buying them.
As long as there is a bot, we have no economy, thus making it that much more important to keep the VAT high and get players to buy and sell to the bot.
Do Not Lower the VAT
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Voted!
A high VAT is important for larger nations whose military infrastructure is based in maximizing commune workers. Commune workers do not pay VAT on anything other than what they spend BEYOND their regular rations. So a high VAT is designed to do two things:
1 - Rape the Bot.
2 - Rape the two-clickers.
If you want a high VAT and TAX rate then support the smaller players who have to accomodate it
By lowering the VAT, it would make our Q5 Prices 22.68 ZAR. Brazil and other countries are still MUCH cheaper than that. The bot still buys most of the goods at that price anyways, and the country benefits very little. My profit margin changes $0 if we lower the VAT, but the country gains nothing. Most players will still buy their goods from other countries.
I support smaller players. I figure out the bot prices weekly, post them to the public and tell people how to make free money.
One month ago I liquidated all my ZAR and turned it into 20 Gold, which I used to buy an eSA Market License. Starting with 1,000 ZAR I am now up to 22,000 ZAR and I've upgraded my storage 5 Times. (I'd be right around 30,000 ZAR.)
It doesn't take much to start it. That's my help to new players.
V+S!
We have commune production in the MUs. It is not only for big nations. On the contrary, that is the only way in this game.
Voted!