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Question
Distinguish between Tax Revenue and Non-tax Revenue, with suitable examples.
Distinguish Between
Solution
| S. No | Category | Tax Revenue | Non-Tax Revenue |
| 1. | Definition | Revenue that the government receives via taxes. | Government revenue derived from sources other than taxes. |
| 2. | Types | Taxes are direct (like income tax) and indirect (like GST). | Fees, penalties, interest, dividends, and earnings from businesses in the public sector. |
| 3. | Characteristics | Both individuals and corporations are required to make payments. | Obtained by the provision of services, fines, or resource ownership. |
| 4. | Examples | The tax on personal income is known as income tax. GST stands for Goods and Services Tax. | Fees and Fines: Penalties or fees associated with licensing. Dividends: Earnings from businesses held by the government. Interest: Profits from government-issued loans. |
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