Multiple choice

Royalties from mines, forest etc is a source of

  1. tax revenue for state government

  2. non-tax revenue for state government

  3. tax revenue for central government

  4. non-tax revenue for central government
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is a source of non-tax revenue for state government. The state charges royalty for allowing to use the forests, mines owned by the state government. The royalty earned by the state government is the revenue earned not by imposing any tax. Hence, it is a source of non-tax revenue for state government.

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