Question

Calculate Indirect Taxes From The Following Data Calculate Indirect Taxes From The Following Data

Answer 1

The given data is

NDP at MP = GNP at MP – Consumption of fixed capital + Factor income to abroad – Factor income from abroad

NDP at MP = 58,350 – 1,625 + 865 – 625

NDP at MP = 56965

Net Index tax = NDP at MP – NDP at FC

Net Index tax = 56965 – 55,915

Net Index tax = 1050

Net Index tax = Index tax – Subsidies

Index tax = Net Index tax + Subsidies

Index tax = 1050 + 1540

Indirect Taxes = 2590

Therefore, from the above-given data, Indirect Taxes is 2590