Question

what is net indirect tax?​

Answer 1

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. Symbolically: Market Price = Factor Cost + Indirect taxes – Subsidies. = Factor Cost + Net indirect taxes.

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Answer 2

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Net indirect tax refers to the difference between indirect taxes and Net indirect tax refers to the difference between indirect taxes and subsidies.