Explain any four sources of non-tax revenue of the government.

Answer: Fees, fines and penalties, prices of public goods/services, special assessment, grants and gifts, escheat, borrowings and profits of public enterprises.

1. Fees: Payments made for services rendered by the government, e.g. registration fees, licence fees, court fees, passport fees.
2. Fines and penalties: Imposed on those who break laws, e.g. traffic fines, penalty for late payment of tax. Their aim is to prevent violations rather than to raise revenue.
3. Prices of public goods and services: Charges for goods and services supplied by the government and public enterprises, e.g. railway fares, postal charges, electricity charges.
4. Special assessment: A charge on property owners whose property value rises because of public development work such as a new road or drainage.
5. Grants and gifts: Received from other governments, international institutions or individuals, especially during emergencies.
6. Escheat: Property of a person who dies without a legal heir or will passes to the government.
7. Profits of public enterprises and borrowings: Surplus earned by public sector undertakings and loans raised from the public and institutions.