Major sources of Government revenue

• Tax revenue
• Non-tax revenue

Tax Incidence

• The burden of taxes is called tax incidence.
• Government taxes can be divided into two parts.
  • Direct tax
  • Indirect tax

Direct Tax

• Payment of tax directly by a individual or a firm is direct tax; it depends on income, wealth and properties of the direct tax payer.
• Ex:
  • Income Tax
  • Stamp Tax

Indirect Tax

• The taxes that is not imposed only an the tax payer is called indirect tax.
• Ex:
  • Taxes on goods and services
  • Business turn over tax

Tax charging Types

• Proportional tax
• Progressive tax
• Regressive tax