An Introduction to 'Taxation'

It would be an inaguratory note to say that

Any nation requires funds to carry out development plans, handle day to day administration, maintain peace and integrity and launch all public welfare activities

Funds required by the country are collected from two sources:

• debt
• revenues

Further debt can be collected from

• external sources: debt collected from outside the country
  
• internal sources: debt collected from inside the country

Revenues of the government come basically from two sources:

• Tax
• Non-tax

Non-tax sources:

• gifts
• grants
• revenues from public enterprises
• administrative revenues:
  
  • registration fees
  • Fines
  • Penalties
  
  

Tax-sources:

• Customers
• Excise duties
• VAT (Value added tax)
• income tax 

So, tax is ther major source of government revenue