I think yes it is possible coz nit is d diff between subsidy n indirect tax ....if both d value .....same ...then d diff between them will 0 that is nit will be 0

Is it possible for net indirect tax to be zero?

Yes, it is possible for net indirect tax to be zero. Net indirect tax refers to the difference between indirect taxes imposed by the government and subsidies provided by the government on goods and services. In certain situations, the government may choose to provide subsidies that offset the indirect taxes, resulting in a net indirect tax of zero.

Explanation:

Indirect taxes are taxes imposed by the government on the production, sale, or consumption of goods and services. They are typically included in the prices of goods and services and are ultimately paid by the consumers. Examples of indirect taxes include goods and services tax (GST), excise duty, customs duty, etc.

On the other hand, subsidies are financial assistance provided by the government to individuals or businesses to encourage the production or consumption of certain goods and services. Subsidies help to reduce the cost of production or consumption and are aimed at promoting specific industries or addressing social issues.

When the government provides subsidies on goods and services, it effectively reduces the price paid by consumers. This reduction in price can offset the indirect taxes imposed on the same goods and services. In such cases, the net indirect tax becomes zero because the subsidies cancel out the indirect taxes.

Example:

Let's consider an example to illustrate this concept. Suppose the government imposes a 10% tax on a particular good. If the price of the good is $100, the tax imposed would be $10. However, if the government decides to provide a subsidy of $10 on the same good, the price paid by consumers would effectively be reduced to $100 - $10 = $90.

In this case, the indirect tax of $10 is offset by the subsidy of $10, resulting in a net indirect tax of zero. The government's intention behind providing the subsidy could be to promote the consumption of the good or to support a specific industry.

Conclusion:

In conclusion, it is possible for net indirect tax to be zero when the government provides subsidies that offset the indirect taxes imposed on goods and services. This helps to reduce the burden on consumers and can be a part of the government's economic policies to promote specific industries or address social issues.