In certain instances, the base costs under AFP delivery will include a provision for certain taxes and insurance premiums. The equivalent costs will not appear under the PSC, as the public sector may be exempt from paying certain taxes and may "self insure." These perceived cost advantages could be misleading. As a result, an adjustment called the "competitive neutrality adjustment" is required to negate this potentially misleading cost of AFP delivery. The adjustment consists of adding such costs to the PSC. The perceived advantages are misleading because taxes are costs that ultimately result in revenues to the public. It might be possible to distinguish among the various levels government to whom taxes are paid, so that taxes paid to the Government of Canada were treated differently from provincial taxes. It is IO policy not to draw such a distinction on the basis that tax revenues paid to the Government of Canada also benefit the Province. A similar adjustment is required in respect of insurance. When the government chooses to self-insure, there is a perception that the government has saved on insurance premiums. In fact, the government is taking on risks otherwise covered by insurance, and the government should account for this additional risk. An adjustment is made to the PSC by adding an amount equivalent to the premium otherwise paid by the private sector under AFP to account for the additional risks.