Question

Tax is a major source of revenue for the government.

• A. True
• B. False

Answer 1

The correct option is A True

Tax is one of the major sources of revenue for the government to carry out its work. The revenue generated by custom duties include import duties, basic duties, and duties levied on specific items. Revenue may be extracted from sources such as individuals, public enterprises, trade, royalties on natural resources and/or foreign aid.

A portion of taxes may be used to service past debts. Governments also use taxes to fund welfare and public services. These services can include education systems, pensions for the elderly, unemployment benefits, and public transportation.