Explanation: Production taxes or production subsidies are paid or received with relation to production and are independent of the volume of actual production.

• Some examples of production taxes are land revenues, stamps and registration fees and tax on profession.
• Some production subsidies are subsidies to Railways, input subsidies to farmers, subsidies to village and small industries, administrative subsidies to corporations or cooperatives, etc.
• Product taxes or subsidies are paid or received on per unit of the product.

Source: TMH Ramesh Singh