TAX | FEE |
A tax is a compulsory contribution made by a taxpayer. | A fee, by definition, is a voluntary payment. |
As far as tax is concerned, there is no direct give-and-take relationship between the taxpayer and the tax-levying authority. | A fee is a direct payment by those who receive some special advantages or the government guarantees the services who pay fees. Fees are, therefore, deemed to be the by-products of the administrative activities of the government. |
It has no separate objective. Taxes are levied in the greater interests of the country. | Fees are mostly imposed to regulate or control various types of activities. |