What are the major source of revenue for government?
Tax is one of the major sources of revenue for the government to carry out its work. Tax revenue can be classified into a few major categories — corporation tax, tax on income, Customs, Union excise duties, service tax, and several others. Corporation tax is the biggest source of revenue for the government.
What are the 5 major sources of revenue for the local government?
What are the sources of revenue for local governments?
- 30 percent from property taxes.
- 5 percent from general sales taxes and gross receipts taxes.
- 2 percent from selective sales taxes on purchases such as alcohol, motor fuel, and tobacco products.
- 2 percent from individual income taxes.
What are the six sources of local government revenue?
Local government revenue comes from property, sales, and other taxes; charges and fees; and transfers from federal and state governments. Taxes accounted for 42 percent of local general revenue in 2017. Local governments collected $1.7 trillion of general revenue in 2017.
Which is the major source of revenue for the government Mcq?
Majority of the revenue collected by the government is in the forms of taxes i.e. both direct taxes (income tax, wealth tax, property tax) and indirect taxes (GST, service tax). These taxes give revenue in huge quantity and hence it becomes the most important source of public revenue.
What is the biggest source of income for central government in the Union budget 2020 21?
In 2020-21, 28.5% of the revenue came from GST followed by corporate tax and personal income tax, 28.1% and 28.3% respectively.
What is the most important source of revenue?
The individual income tax has been the largest single source of federal revenue since 1950, amounting to about 50 percent of the total and 8.1 percent of GDP in 2019 (figure 3).
What is the main source of revenue for the government class 8?
tax
Solution: The main source of income for the government is through the tax it collects from the citizens.
How does the government of Nigeria generate revenue?
This is another effective way of earning internally generated revenue by the government of Nigeria. This tax has a wide coverage and it is usually imposed on the basic necessities of life. For goods with inelastic demand, sales tax is a reliable source of revenue. Also, this type of tax is an effective tool for controlling inflation in the country.
What are the sources of government revenue?
Hence, the sources of government revenue will be analyzed on the basis of the above level of government. As the aim of the Federal Government is to provide public amenities like power supply, electricity, education, security, one of it’s major responsibility is to generate revenue for the country and its states.
Which taxes have benefited Nigeria’s economy?
Custom duty is another type of tax that has benefited the economy. At the close of 2017, revenue generation by the Nigeria Customs Service stood at N1.037 trillion which was higher than the country’s anticipated target by 27%. Overall, government revenue can be divided into oil revenue and non-oil revenue and these have been highlighted below: 1.
How is the tax collection in Nigeria different from other countries?
The tax collection in Nigeria is a far cry from what is obtained in developed countries like the US and UK. For example, in the US, individual income tax has been the largest single source of federal revenue since 1950.