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Question

Which of the following are non-tax revenues?

A
Fines and penalties
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B
Interest received
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C
Cess
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D
User fees
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Solution

The correct option is D User fees
Governments generate income from tax and non-tax sources. Unlike taxes, non-taxes are not mandatory payments. However, non-taxes are a recurring source of income for a government. Fines and penalities, interest received on loans and user fees on service provided are few non tax revenue sources for governments.

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