The price I can charge for an item has no relation to what it costs me to produce it.
But, of course, if the value is not larger than my costs the I will not be in business for too long as I will not make money. This can happen because you are very efficiently making products that are not valued, or inefficiently making products that are valued. In either case, the market cares nothing about your costs.
Another straw man Robbie. that's not even the issue re taxation. We aren't discussing pricing strategy here, but taxation and its effect on helping to lower prices.
Or perhaps you believe that tax costs are not part of final prices of things???