Classification of components of Income-based Gross Domestic Product

5 - Taxes less subsidies on products and imports

'Taxes less subsidies on products and imports' refers to the difference between taxes on products and subsidies on products. These taxes and subsidies are payable (received) based on the quantity or value of the goods and services produced or sold. To that we add taxes and duties on imports that become payable when goods enter the economic territory by crossing the frontier or when services are delivered to resident units by non-resident units.