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Value Added from Manufacturing and Trading Activities

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Why is it mentioned the word "Recoverable Taxes" while subtracting from sales to attain "Value added by Manufacturing and Trading Activities".. Are non recoverable Taxes not subtracted... Even they are payments in actual... Why are they not subtracted?? 

Replies (2)

This is taxation. Value added does not arise only through eliminating unprofitable activities but also through tax consequences. How recoverable taxes are value added?

eg. 

Profit before tax

+ expenditure which cannot be claimed

- expenditures which can be claimed like capital allowances

= profit adjusted for tax purposes

- % corporate tax

= profit after tax

Hope this answered your query. 

Recoverable taxes are like reimbursement.
Non recoverable taxes are like expenses.
Now take for example
A company produces a product for


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