Revenue is the 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 the geography, population, natural resources, earning potential of people, etc..
Government has many options to earn revenue and this can be as
1. Providing certification, security of properties. Ex: registering of land, house properties, registering vehicles, providing driving licence, 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 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 good amount. When there is deity celebration in a village, the stall, shop keepers 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 to the government.
Besides these, the governments earn a lot by income tax. This tax extends to almost any of the commodity available in market.
Hence you can see that on 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 price of some commodities vary from state to state. This is due to two taxes on the products.
The two taxes are the one by central government and other by the local governments.
This tax is inevitable so almost all the people in the country pay for them.