Question

From the following data, estimate the value of Net Indirect Taxes (NIT): \[ \begin{array}{|c|l|c|} \hline \textbf{S.No.} & \textbf{Particulars} & \textbf{Amount (in Rs. crore)} \\ \hline (i) & \text{Net National Product at Market Price } (NNP_{mp}) & 1,400 \\ \hline (ii) & \text{Net Factor Income from Abroad } (NFIA) & 100 \\ \hline (iii) & \text{Gross National Product at Factor Cost } (GNP_{fc}) & 1,300 \\ \hline (iv) & \text{Consumption of Fixed Capital} & 100 \\ \hline \end{array} \]

Hint:

Net Indirect Taxes are calculated by subtracting Gross National Product at Factor Cost from the sum of Net National Product at Market Price and Consumption of Fixed Capital.

Answer 1

Formula: \[ NIT = NNP_{mp} - NNP_{fc} \] Since \[ NNP_{fc} = GNP_{fc} - NFIA \] Calculation: \[ NNP_{fc} = 1,300 - 100 = 1,200 \] \[ NIT = 1,400 - 1,200 = 200 \] Thus, the Net Indirect Taxes (NIT) is Rs. 200 crore.

Net Indirect Taxes = \( (i) + (iv) (iii) \)
\[ {Net Indirect Taxes} = 1,400 + 100 1,300 = Rs.200 { crore} \]