The government controls over the value product

The government controls over the value product|of products} and inputs by onerous or subsidizing goods or services or perhaps by directly dominant the value of the market. Governments such interference area unit to realize relative financial gain from financial gain taxes to be ready to provide concern to the welfare payments and conjointly social services. As government imposes taxes on merchandise and services, these indirect taxes as they known as includes taxes for merchandise like cigarettes, hydrocarbon and alcoholic drinks. Indirect tax may be a tax on the expenditure on merchandise. These taxes aren’t paid directly by the patron, however indirectly via the sellers of the nice. Here the govt. conjointly controls most business banks in term of loan interest rates that area unit monitored by the Malaysian Bank better-known to be Bank Negara. Despite, the govt. features a direct management over the exchange rate.