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The Importance of Tax and Non Tax Revenues-
This is a really useful and a very important concept for economics and finance students. You should know it in detail for complete clarity. By availing Tax and Non Tax Revenues Assignment Help your problem solving ability will improve and you will be able to solve even the complex problems with great ease. Let us see the importance of this topic-
- Revenue in the economy can be generated on two fronts which can either be tax revenues or non tax revenues.
- Tax revenue is generated from Direct taxes ( income tax, wealth tax, property tax etc.) which are levied on the specific entity or person and Indirect taxes (sales tax, tax related to goods and services etc) the burden of which is borne in an indirect way by the consumers only.
- Non tax revenues are those revenues which are obtained from other activities apart from the taxation like profits from any undertaken activity, dividend income, interest earnings, money received from providing of services, money received by way of fines, fees and various penalties, various grants received from different sources etc.
- Both tax and non tax revenues combine to give the total revenues generated by an economy during a particular period of time.
- It helps in getting a clear picture of the economic condition and the progress. If any changes are required in the policy making then that is undertaken after seeing the available results.
- If the aggregate of revenues exceed the total expenditure then it is a good sign for the economy and if the total expenditure is in excess of aggregate revenues then steps need to be taken to cover the deficit.
- This topic is of extreme importance and it provides a clear means of assessing the economic position.
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