Question

To arrive at the value of Gross Value Added at Market Price (\(GVA_{MP}\)) ______ must be added to Gross Value Added (GVA) at Basic Prices.

A. Product Taxes 

B. Net Product Taxes 

C. Production Taxes

D. Net Production Taxes

Answer 1

Correct option is : B. Net Product Taxes

• To calculate Gross Value Added at Market Price (GVAMP), net product taxes (product taxes minus product subsidies) must be added to the GVA at basic prices.
• This adjustment is necessary because the market price includes taxes levied on goods and services (like GST), giving the final value of goods as seen in the market.