Can someone help with an econ question?

Question

"Indirect taxes such as the GST haven't got anything to do with the actual cost of producting goods, but yet are counted as part of GDP" Is this statement true or false? Explain!! thanks

Answer 1

The statement is false. Taxes are not counted as part of the GDP, only government expenditures (which, in turn, are usually financed via taxes). Remember, GDP = consumption + gross investment + government spending + (exports − imports).