From the following data, estimate the value of Net Indirect Taxes :

CBSE Economics class 12 question and answer | From the following data, estimate the value of Net Indirect Taxes :

By
Komal Kohli
-
cbse

From the following data, estimate the value of Net Indirect Taxes :

S. No. Particulars Amount (7 in crore)
(i) Net National Product at
Market Price (NNP MP)		 1400
(ii) Net Factor Income from abroad (-) 10
(iii) Gross National Product at
Factor Cost (GNP PC)		 1300
(iv) Consumption of fixed capital 80

Ans. the estimated value of Net Indirect Taxes is -30 crore. Note that the negative sign indicates that the net indirect taxes are actually a subsidy (i.e., the government pays more in subsidies than it collects in indirect taxes).

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