Explain 10 Source Of Government Revenue?

Ten sources of government revenue come in the form of taxes. These are really common and affect everybody's day to day life. These 10 sources would include Inheritance Tax, Stamp Duty, Insurance Premium Tax, Airport Tax, Capital Gains Tax, National Insurance, Income Tax, Fuel Duty Tax, Value Added Tax, Council Tax and Vehicle Excuse Duty.

Inheritance Tax is obviously the amount of money that the government takes from the sum of money that is left to somebody in a will. This has always been a controversial tax but it still, nonetheless, exists.

Then there's Stamp Duty. This is a tax that is levied on documents. During the history of this tax, it has been included on most legal documents like receipts, cheques and marriage licenses. An actual physical stamp has to either be attached or impressed on the document to show that Stamp Duty has been paid before the document became legally effective. Some modern versions do not require the stamp.

Insurance Premium Tax is pretty simple. It is simply an amount of money added to the price of your insurance premium that goes straight back to the government. This is a great source of income for the government given that it is legally required of all drivers to take out their own insurance policies their car.

Then, Capital Gains Tax is a tax that is charged on all capital gains. This is the profit realized on the sale of a particular non-inventory asset that was bought at a lower price. The most common capital gains come from the sale of things like precious metals, property, and even stocks and bonds.

Then there's National Insurance. This started life as a contributory system against unemployment and illness and then became a way of dealing with retirement pensions and other benefits that may be taken in the future.

These are the sources of central government.

1. Custom Duties: The most important source of public revenue is taxation. Custom duties are imposed on the imports and exports of a country, e.g. sugar, tea, cotton, rice, oil, medicine etc.

2. Central excise Duty: The central excise duty is levied upon locally manufactured goods and available services e.g. soap, tea, cigarettes, sugar, oil, cotton, electricity, gas, telephone etc.

3. Income tax and wealth tax: It is imposed upon the individual incomes and wealth. It is collected under a self-assessment system. Income tax is a direct tax.

4. Sales tax: It is levied on the sale of goods in a country. It is an indirect tax and collected by central excise department.

5. Price: The government has to launch enterprises such as railways, hydro electric works, iron and steel works etc. These services of goods are not supplied freely but charge a price.

6. Fee: It is a compulsory payment made by those who obtain a definite service in return, such as an educational fees, license free etc.

7. Special assessment: It is a compulsory contribution levied in proportion to the special benefit. It is intended to cover a part of expenditure incurred by the public authority.

8. Rates: These are levied by local bodies, e.g. municipal committee and district boards. They are levied on immovable property.

Customs duties and excise taxes
direct and indirect taxes
state owned enterprises

Since ancient time's government have been collecting revenues from their population in different forms. It was necessary in order to meet the different expenditures which the government had to incur. The nature and the extent of expenditures incurred by the government have undergone a lot of changes in the modern world. New sources of collecting the necessary amount have also been found. Now a state has to spend a lot of money on its defence requirements. Development expenditures and expenditures on general public service have also been increased manifold. Now sources of revenue the necessary amount have also emerged.

For example now a country can receive some resources from another country or an international organization either as loans or as aids. However collecting the revenues from its own population still remains as a major and popular source of earning. Every country tries to develop its internal revenue from external sources. The stability of any state and its economic structure is strongly correlated with the shape and framework of its taxation system. In any country the government receives different types of taxes in order to finance its day to day expenses defence requirements and development projects. These taxes include custom and excise duties, income tax and sales tax.

What is the difference of government revenue and public revenue

1.  Taxes -- in other words your money.  Our money.

2.  They borrow money.  They borrow billions.  And billions.  They do this by issuing government bonds that pay interest to those -- usually banks or pension funds -- who invest in them.  But it's still your money/our money because when they pay interest, it is paid out of taxes and when they pay back the original loan -- if they pay it back -- they pay it back out of taxes!!  Sometimes they don't pay it back, they just replace the old loan with a new one.  On the stock market, such securities slashed investments are generally referred to as " gilts".  Meaning "gilt-edged securities ".