How is tax revenue different from administrative revenue?

● Tax revenue is the main source of revenue for the government.

● It is the revenue that arises on the account of taxes levied by the government.

● They have to be paid for by all the people.

● It is of two types- direct tax and indirect tax.

● Direct tax is a tax that is levied immediately on the income or property of the people. For example income tax and corporate tax. The impact and incidence of the tax fall on the same person.

● Indirect tax is the tax that is levied by the government in the production and sale of the goods. For example sales tax and excise duty. It is paid by one person but the burden is borne by another person.

● Administrative revenue is the revenue that arises on account of the administrative function of the government.

● It is the secondary source of revenue.

● It is paid only by those who gain the benefit of this service.

● For example fees, license fees, penalty and fine.