Distinguish between Tax revenue and Non-tax revenue.

1.	Distinguish between Tax revenue and Non-tax revenue.
Answer» Tax revenue: 1. Tax revenue refers to revenue received by the government through various taxes. 2. Tax revenue comes from direct tax, i,e. income tax, wealth tax and indirect tax, i.e,, G.S.T. 3. Tax is a major source of revenue to the government. 4. Tax revenue particularly direct tax is collected to reduce economic inequality. Non-tax revenue: 1. Non-tax revenue refers to revenue received by the government from various sources, other than taxes. 2. Non-tax revenue comes from fines and penalties, fees, gifts, grants, donations, borrowings, special levy, etc. 3. Non- tax revenue is not a major source of revenue to the government. 4. Non-tax revenue, particularly special levy, fines and penalties, etc. are collected to discourage the citizens from violating the law.

Answer»

Tax revenue:

1. Tax revenue refers to revenue received by the government through various taxes.

2. Tax revenue comes from direct tax, i,e. income tax, wealth tax and indirect tax, i.e,, G.S.T.

3. Tax is a major source of revenue to the government.

4. Tax revenue particularly direct tax is collected to reduce economic inequality.

Non-tax revenue:

1. Non-tax revenue refers to revenue received by the government from various sources, other than taxes.

2. Non-tax revenue comes from fines and penalties, fees, gifts, grants, donations, borrowings, special levy, etc.

3. Non- tax revenue is not a major source of revenue to the government.

4. Non-tax revenue, particularly special levy, fines and penalties, etc. are collected to discourage the citizens from violating the law.

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