Sources of Tax Revenue
What are the sources of tax revenue?
The sources of tax revenue are as follows:
- Customs: The taxes which are imposed on exports and imports at the customs office are called customs. These taxes are imposed on goods according to the quantity and the value of such goods. Customs are the indirect taxes
- Tax on consumption and production of goods and services: Government imposes taxes on the production and the consumption of goods and services. In this category, excise duty, sales tax, entertainment tax, contract tax, road and bridge tax, value-added tax, etc. are included. And these taxes are indirect taxes
- Land revenue and registration: Land tax is imposed on landlords for the ownership of the land. Registration charges are the payments made for the registration of land and houses. These taxes are direct taxes.
- Tax on property, profit, and income: Public corporations, private companies, and individuals should pay profit and income taxes according to their income and profit. Taxes on houses of urban areas and vehicle taxes are also imposed on the ownership of such property. These taxes are direct taxes.