There are many other non-tax sources through which the government generates revenue.
Non-tax revenue is the income earned by the government other than tax sources. These include standard user charges and earnings from state assets. The following are the sources of government revenue from non-tax receipts
Non-Tax Receipts
Fee
This is a user charge for availing of some concessions or services of the government. For example court fees, government school fees, driving license fees, and arm license fees.
Price
Sometimes the government charges for some goods and services which they provide for usage. For instance, the postal service, money order fee, telephone bill, electricity bill, sale of forest wood, etc. The difference between fee and price is that the fee is charged at a low price while the prices are set to fulfill at least the recovery cost.
Special Charges
The government provides some special facilities to an area and in return, they charge for it to recover costs spent on it. For example, the roads, bridges, and highways. Similarly, parks and toll taxes are also included in non-tax receipts.
Public Property
The government owns many properties and generates a lot of income from them by renting out or selling out. Similarly, they lease or mortgage the property and generate revenue from it. Public property is also a non-tax receipt source of government income.
Services Of The Government
The government also has some investment in the production pursuit from which they generate income.
Fines
Different kinds of punitive action or violation of rule are also the source of government income. Fines are also considered a non-tax revenue receipt.
Loans
The government borrows loans from internal and external sources to meet budget requirements. These loans are also the source of government income from non-tax receipts.
Aids
Sometimes rich countries provide help or assistance to the government to meet the required needs. These earnings are also generated from non-tax receipts. These kinds of assistance generally increase the earnings of the government
Local Tax
The local level of the government like the district government, and union council levied taxes to meet their needs which are counted as government earnings. These earnings are included in the non-tax receipts.
