Why taxes are not added to calculate Net Value Added at market price ?
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Why taxes are not added to calculate Net Value Added at market price ?
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Explanation:
Find Net Value Added at Market Price. = 800 x 20 = Rs 16000 crore. Now, Value of Output = Sales + Change in Stock = ? [16000 +(-500)] = Rs 15500 crore . Now, $GV{{A}{MP}}$ = Value of Output - Intermediate Cost = Rs (15500 -8000) = Rs 7500 crore.