Indirect tax example sentences

Thus, NNP at factor cost ? National Income (NI ) ? NNP at market prices – (Indirect taxes – Subsidies) ? NNP at market prices – Net indirect taxes (Net indirect taxes ? Indirect taxes – Subsidies) We can further subdivide the National Income into smaller categories.In India, the government has been trying to increase tax revenue with greater reliance on direct taxes (indirect taxes are regressive in nature – they impact all income groups equally).Observe also, that without the government imposing indirect taxes and subsidies, the total value of final goods and services produced in the economy, GDP, becomes identically equal to the National Income.In the absence of a government imposing indirect taxes or disbursing subsidies, the value of the total output of final goods or GDP is equal to National Income.Two new taxes – the fringe benefits tax (on those benefits enjoyed collectively by the employees) and on cash withdrawals from banks over a certain threshold in a day – were introduced in the budget for 2005-0 The share of direct taxes in gross tax revenue has increased from 1 1 per cent in 1990-91 to 4 3 per cent in 2003-0 There has been a reduction in the share of indirect tax revenue, falling from 7 4 per cent in 1990-91 to 5 9 per cent in 2003-0 The redistribution objective is sought to be achieved through progressive income taxation, in which higher the income, higher is the tax rate.In the absence of indirect taxes or subsidies, the total value of the final goods output is disbursed among different factors of production – wages to labour, interest to capital, rent to land etc.When indirect taxes are imposed on goods and services, their prices go up.Tax revenues, an important component of revenue receipts, comprise of direct taxes – which fall directly on individuals (personal income tax) and firms (corporation tax), and indirect taxes like excise taxes (duties levied on goods produced within the country), customs duties (taxes imposed on goods imported into and exported out of India) and service tax.