Explain the treatment of 'Value of interest Foregone on Loan provided to workers by employers' in National Income Accounting
It should be a part of COE (Wages and Salaries in Kind) but since this loan is most probably used for consumption purposes it should NOT be a part of National Income by income method.
However, since it is added as a part of COE it should be subtracted as well to nullify its effect
From where should I subtract this interest???
Will this be subtracted from Total Interest which includes interest paid on productive as well as non productive loans???