What is the difference between the GDP at factor cost and the GDP at basic prices?
Whereas in the past, Statistics Canada published net domestic product at factor cost, this practice changed with the publication of the estimates of the first quarter of 2001 of the national economic and financial accounts. To bring the Canadian System of National Economic Accounts into line with international standards, the valuation of production is now done according to basic prices.The concept of GDP at basic prices differs from the concept of GDP at factor costs in that the former includes net indirect taxes (indirect taxes less subsidies) attached to factors of production. For example, whereas property taxes, capital taxes and payroll taxes were not included in the valuation of GDP at factor costs, they are included in the valuation of GDP at basic prices. These production expenses are included in GDP at basic prices, subtracting from them any subsidies attached to factors of production, such as subsidies allocated for job creation and training.The concept of GDP at basic prices
