Revenue is an important source of funds for the government besides income tax.
These funds from different types of revenue sources help governments to run smoothly and effectively. Ir includes paying salaries to police, civil officers, and other government servants.
The governments have many types of revenue sources depending on factors like geography, population, natural resources, earning potential of people, etc..
Government has many options to earn revenue, and this can be as
1. Providing certification, the security of properties. Ex: registering of land, house properties, registering vehicles, providing driving license, pollution certificates, etc.
2. Providing utility services like electricity, clean roads, drinking water supply, transportation by road or rail, etc.
3. By collecting taxes like a house, water, agricultural land taxes, etc. This is done once a year or for 6 months once.
4. Collecting tax for stalls and shops in any celebrations or functions. This a temporary revenue but yields a good amount. When there is a deity celebration in a village, the stall, shopkeepers, and hotel setters pay revenue to the government for the period of celebration only to allot proper space in the celebration premises.
5. Revenue from vegetable and other agriculture-related markets. This is a continuous revenue for the government.
Besides these, the governments earn a lot by income tax. This tax extends to almost any of the commodities available in the market.
Hence you can see that on the retail price of products “inclusive of all taxes.” This means the product also carries taxes besides the rate fixed by the manufacturer.
Also, you might have noticed that the price of some commodities varies from state to state. This is due to two taxes on the products.
The two taxes are the one by the central government and the other by the local governments.
This tax is inevitable, so almost all the people in the country pay for them.