Non Tax Revenue Examples

Non tax revenue as the name suggests refers to the sources of income of the government which does not arise due to the taxes rather it arises due to some other reasons. In order to understand it better one should look at given below non tax revenue examples –

  1. Dividends – When public sector companies are profitable then they give dividend to its shareholders and since government owns majority stake in such companies it results in major source of income.
  2. Stake sale –When stock market are in good condition then government can raise significant amount of money by lowering its stake in public sector units by bringing IPO or FPO in the market.
  3. Rent and royalties – Since majority of natural resources are under the control of government, they give it to private companies for mining on yearly rent or royalty and hence it is another major source of revenue.
  4. Donations – Many wealthy individuals in order to show their gratitude towards the nation give donation to the various funds setup by the government for the welfare of the society which results in revenue for the government.
  5. Fines and Penalties – Government has made many rules and regulations and individuals and companies breaking these rules have to pay money in the form of fines and penalties resulting in inflow of money for the government.
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