The correct option is 1 and 3 only.
Explanation
In National Income Accounting, specifically under the methodology adopted by the Central Statistics Office (CSO) aligned with the System of National Accounts (SNA) 2008, indirect taxes are classified into two distinct categories: Production Taxes and Product Taxes. This distinction is fundamental to deriving Gross Value Added (GVA) at Basic Prices and Gross Domestic Product (GDP) at Market Prices.
Statement-wise Analysis:
- Statement 1 is Correct: Production taxes are duties paid or received in relation to the production process and are independent of the volume of actual production. These are costs associated with the operation of an enterprise, regardless of how many units of goods or services it produces.
- Statement 2 is Incorrect: Land revenues, stamp fees, and registration fees are charges imposed on the ownership or use of assets required for production, irrespective of the output volume. Therefore, they are classified as Production Taxes, not Product Taxes.
- Statement 3 is Correct: Product taxes are taxes paid or received on a per-unit basis of the product. The total liability depends directly on the volume of goods or services produced or sold. Examples include Excise duty, Service tax, Sales tax, VAT, and GST.
Key Takeaway:
The calculation hierarchy in National Income Accounting is:
1. GVA at Basic Prices = GVA at Factor Cost + (Production Taxes - Production Subsidies)
2. GDP at Market Prices = GVA at Basic Prices + (Product Taxes - Product Subsidies)