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Question
Answer the following question
What are the source of non-tax revenue?
Solution
The following are some of the main sources of non-tax revenue:
i. Fees and license fee - The government receives fees in return of various services provided to the people. For example college fees, passport fees, registration fees etc.
ii. Gifts and grants - Gifts, grants and donations received by the government in the event of a natural calamity, war etc. also form a source of revenue for the government.
iii. Fines and penalties - Fines and penalties are imposed by the government on those who boycott law.
iv. Escheat - It refers to the income from a property of a person who dies without legal heirs.
v. Income from public enterprises - Income and profits from various enterprises owned by the government such as railways, SAIL etc. form an important source of revenue for the government.
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