State with reasons whether you agree or disagree with the following statement (any three): There are many sources of non-tax revenue.

Answer: I agree with the statement.

Reasons: Non-tax revenue is revenue the government earns from sources other than taxes. Its main sources are:

1. Fees: paid for specific services, e.g. registration fees, court fees, passport fees.
2. Prices of public goods and services: e.g. railway fares, postal charges, electricity charges.
3. Fines and penalties: imposed for breaking laws.
4. Special assessment: charged on property owners whose property value rises due to public improvement works.
5. Gifts, grants and donations: received from individuals, institutions and foreign governments.
6. Profits of public sector enterprises and interest and dividends on loans and investments.
7. Licence fees, escheats (property with no legal heir) and forfeitures.