CBSE Class 12-commerce Answered

why is corporate tax included while wstimating national income even after it being a transfer payment?

Asked by anjali_tripathi1999 | 10 Apr, 2017, 03:33: PM

Expert Answer

Hi Anjali,

The corporate tax is included in the estimation of national income because the corporate tax is paid by the private enterprises to the government which are not received by the households. The income earned by both private individuals and public sector plus the net factor income abroad is the National income of a country.

Answered by Tharageswari S | 10 Apr, 2017, 04:57: PM