Definition: Value added at factor cost

Category: Transport

Value added at factor costs is calculated by adjusting value added at basic prices for operating subsidies linked to service provision and duties and taxes linked to service provision.

Note: Subsidies on payroll and workforce, environmental protection and grants for interest are included in the adjustment. Taxes such excise duty, stamp taxes, taxes on financial and capital transactions, vehicle registration taxes and taxes on insurance premiums for example are included in the adjustment. Investment subsidies and value added tax are excluded from the adjustment. http://ec.europa.eu/eurostat/ramon/statmanuals/files/KS-BI-03-002-__-N-EN.pdf