Question

Net indirect taxes are estimated as

Answer 1

ANSwer❥

Net Indirect Tax is the difference between the Indirect tax and subsidy. To find out Market Prices (MP), indirect taxes are added and subsidies are subtracted from Factor Cost (FC) as explained above. In short, MP includes net indirect tax whereas FC does not.

Answer 2

Answer:

There are two methods for estimating the monetary worth of final products and services: at Factor Cost (FC) and at Market Price (MP). The distinction between FC and MP is, in a nutshell, "net indirect tax." The distinction between indirect tax and subsidies is a net indirect tax.

Explanation:

An indirect tax is one that is imposed on goods and services prior to the customer, who ultimately pays the indirect tax as part of the market price of the good or service purchased. Indirect taxes include sales taxes, per-unit taxes, value-added taxes (VAT), goods and services taxes (GST), excise taxes, consumption taxes, and tariffs. As an alternative, a tax is considered indirect if the entity paying the tax to the tax collecting authority does not see a matching decline in revenue, implying that the impact and tax incidence are not on the same company and the tax can be moved or passed on. An intermediary (like a retail establishment) collects an indirect tax from the person (like the consumer) who is responsible for paying the tax that is included in the cost of the item being purchased. Later, the intermediary files a tax return and sends the government the tax money together with the return. In this context, the word "indirect tax" is used to contrast with "direct tax," which is paid by the government directly to the individuals (whether legal or natural) against whom it is levied. According to some observers, an indirect tax can be levied by the taxpayer to a third party, whereas a direct tax cannot.

Net indirect tax: what is it?

• Net indirect tax is the difference between indirect taxes and subsidies, to put it simply.
• The government receives the indirect tax from a store in the supply chain.
• Indirect taxation produces income.
• So, the assertion is accurate.

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