2.
Using appropriate diagrams, explain two (2) types of the government
revenues.
Tax revenue
• Collected based on laws that have
been approved by the Parliament
• The major portion of the revenue is
from taxes
• Tax is a compulsory contribution by
an individual or a firm to the
government to be used in the
common interest of all
• Tax is a contribution to the revenue
of the government so that the
government can provide the
necessary administrative services to
govern the country.
• There are two types of taxes, namely
direct taxes and indirect taxes
Non-tax revenue
• Non-tax revenue is the revenue from
non-tax revenue.
• Revenues not generated from tax
• Non-tax revenue includes revenue
from government services, fees for
issue of license and permit.
• Sales of government assets, rental of
government investments, fixes, fees
and penalties, contributions from
foreign government and international
agencies
• Cash royalty from petroleum and gas