Tax revenue is the income that is gained by governments through taxation.
Just as there are different types of tax, the form in which tax revenue is collected also differs; furthermore, the agency that collects the tax may not be part of central government, but may be an alternative third-party licenced to collect tax which they themselves will use. For example:
- In the UK, the DVLA collects vehicle excise duty, which is then passed onto the treasury.
Tax revenues on purchases can come from two forms: 'tax' itself is a percentage of the price added to the purchase (such as sales tax in US states, or VAT in the UK), while 'duty' is a fixed amount added to the purchase price (such as is commonly found on cigarettes). In order to calculate the total tax raised from these sales, we must work out the effective tax rate multiplied by the quantity supplied.
Read more about Tax Revenue: Changes in Taxation Level
Famous quotes containing the words tax and/or revenue:
“If you tax too high, the revenue will yield nothing.”
—Ralph Waldo Emerson (1803–1882)
“Happy are those who find wisdom, and those who get understanding, for her income is better than silver, and her revenue better than gold. She is more precious than jewels, and nothing you desire can compare with her. Long life is in her right hand; in her left hand are riches and honor. Her ways are ways of pleasantness, and all her paths are peace. She is a tree of life to those who lay hold of her; those who hold her fast are called happy.”
—Bible: Hebrew, Proverbs 3:13-18.