Q.Explain any four non-tax sources of public revenue.

Besides taxes, the government earns non-tax revenue from fees, fines and penalties, special assessments, profits of public enterprises, gifts and grants, and similar sources. Four important ones are explained below.

Non-tax revenue is the income the government receives without imposing a tax. Four important non-tax sources are:

1. Fees. A fee is a payment charged by the government for a specific service it provides to a citizen, such as court fees, registration fees or licence fees. Unlike a tax, a fee involves a direct service in return.
2. Fines and penalties. These are charges imposed on individuals for breaking the law or violating rules (for example, a traffic fine). Their main aim is to discourage wrongdoing rather than to raise revenue, so the amount collected is usually small.
3. Special assessment. This is a compulsory charge levied on the owners of a particular property who gain a special benefit from a public improvement — for instance, a levy on landowners whose land value rises after a new road or drainage facility is built nearby. …