Question

Which of the following public revenue is a major contributor to the total central revenue?

• A. Tax revenue
• B. Non-tax revenue
• C. Both A and B have equal contribution
• D. None of the above

Answer 1

The correct option is A Tax revenue

Public revenue which is a major contributor to the total central revenue is tax revenue. Revenue earned by government by taxing people is called tax-revenue. It is of two types:

• Direct tax: tax payed to the government directly. Examples include income tax, gift tax, wealth tax, property tax etc.
  
• Indirect tax: this tax is collected by an intermediary person from the person who ultimately bears the burden. Examples are sales tax, value added tax (VAT), goods and services tax (GST) etc.