Is Payment of indirect taxes by a firm included/excluded in national income?
Is Payment of indirect taxes by a firm included/excluded in national income?
Anurag Pathak Changed status to publish December 9, 2023
No,
It will not be included in the national income as it is a transfer payment and occuring without any corresponding value addition.
Explanation:-
The payment of indirect taxes by a firm to the government is just a transfer payment. Because the government does not guarantee any factor services against it.
It does not add to the current flow of goods and services in the economy.
Anurag Pathak Changed status to publish December 9, 2023
