How tax revenue is different from non tax revenue?

What is non-tax revenue state the different forms of non tax revenues?

Difference between Tax Revenue and Non Tax Revenue

Tax revenue is charged on income earned by an individual or an entity (direct tax) and on the value of transaction of goods and services (indirect tax). On the other hand, non-tax revenue is charged against services provided by the government.

What is meant by non-tax revenue explain the different sources of non-tax revenue?

Non-Tax Revenue is the recurring income earned by the government from sources other than taxes. Description: The most important receipts under this head are interest receipts (received on loans given by the government to states, railways and others) and dividends and profits received from public sector companies.

What is an example of non-tax revenue?

For example, when citizens use services offered by the government, they pay bills, which are categorised as non-tax revenue, as the government provides infrastructure support to implement the services. Non-tax revenue also includes the interest collected by the government on the loans or funds offered to states.

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What are the 4 types of tax?

Types of Taxes

  • Consumption Tax. A consumption tax is a tax on the money people spend, not the money people earn. …
  • Progressive Tax. This is a tax that is higher for taxpayers with more money. …
  • Regressive Tax. …
  • Proportional Tax. …
  • VAT or Ad Valorem Tax. …
  • Property Tax. …
  • Capital Gains Taxes. …
  • Inheritance/Estate Taxes.

What are non-tax sources of revenue?

Non-tax revenue refers to the revenue received by the government administration, public enterprises, gifts, and grants, etc. These sources are different than taxes.

What are the 5 major sources of revenue for the government?

In accordance with this system, the revenue of the central government includes tariff, consumption tax and value added tax levied by the customs, consumption tax, income tax of the enterprises subordinate to the central government, income taxes of the local banks, foreign-funded banks and non-bank financial

Is GST a non-tax revenue receipts?

Indirect taxes are those that are collected by intermediaries from individuals and corporations who bear the burden of the tax and passed on to the government. Goods and Services Tax (GST) is an example of indirect tax. Corporation tax forms a large chunk of the government’s tax revenue.

What are the two sources of public revenue?

Taxes, taxes, the selling of public goods and services, fines, contributions, and many more are said to be the sources of public revenue. Also, tax and non-tax income are major sources of public revenue.

What is the main component of the non-tax revenue?

Income from sources other than taxes is called non-tax revenue. It arises on account of administrative function of the government. These are incomes which the government gets in the form of interest, dividend, profit, fees, fines and external grants as explained below.

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What are the components of revenue receipts?

Revenue receipts include the proceeds from taxes and other duties levied by the Centre; the interest and dividend it receives on its investments; and the fees and charges the government receives for its services.

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