SOURCES OF GOVERNMENT REVENUE.

Government  revenue refer to the income generated by the government through various income sources inside and outside the particular government,As to any other person one will be eager to know where government earn money to finance its activity as well as expenditure of the government.The following are the source of revenue of various government including united republic of Tanzania (URT) :-
 Taxation,Like we have discussed in the previous tutorial that taxation is a compulsory levy imposed by the government where by no direct benefit citizen will receive from the government,The levy is usually payable by citizen at different rate depending on the nature of economic activity conducted by an individual or firm  the obtained amount is the revenue for the government and is used to meet various expenditure causing taxation to be the first sourceof government revenue.
FEES,These are payment made by users of public services on government cost sharing in health and education,That is to say the payment made by user of public services i.e health and education  is not the actual cost that they were required to pay rather than contribution on cost already payable government.
FINES,Refer to the penalties imposed by goverment against law breaches,i.e any person or firm which ha been proved guilt by law must be exposed to specific fine as the compensation for the destruction made by a person or firm and the collected amount  being the revenue for the government
GRANTS,Refer to non-payable money provided by the government to another government with the aim of helping such government either to improve or to start a project  which are of great importance.to the society of such government.
FOREIGN INVESTMENT,Sometime government may decide to invest beyond its boundary provided there is a proof for sustainable and profitable cash flow,the obtained amount after operation being the revenue for particular government.

ADVANTAGE AND DISADVANTAGE OF TAXATION.

                     

Although taxation has been the major source of revenue for most government in Africa and world wide as whole,Taxation has both advantage and disadvantage to nation and individual person.The advantage of taxation include the following :-
control inflation,Through increasing of various taxation rate,taxation can be used as the means of controlling inflation especially the demand pull inflation.Since  raising of taxation rate of various of various commodity result into decrease in purchasing power of  individual person hence being a solution to demand pull inflation.
Discourage use of harmful products,As there are many harmful products which are produced in various country but the manufacture of such products may at the same time being a good tax payer,The government may not decide to shutdown such companies instead the government will impose high tax upon such commodity  to discourage users from consumption of such commodity,example cigarette and spirits.
Revenue generation,Taxation also act as important root stock for revenue generation,Since even if the government will have other source of income apart from taxation still the amount of revenue obtained from collection of different types of tax is higher compared to the amount obtained from other sources.
Redistribution of income,Through taxation system especially the progression tax system taxation can be a means of ensuring fair distribution of income between individuals by imposing high tax rate for those who earn more and less tax rate for individual who has lower income,this also can lead to reduction of income gap between poor and rich people.
The disadvantage of taxation refers to all chaos brought along by taxation issues within society either directly or indirectly,The disadvantage of taxation include the following:-
Reduce purchasing power,Taxation especially when the tax rate are high has the tendency of reducing the disposable income of an individual which subsequently reduce the purchasing power.
Discourage saving,Since taxation rate reduce the disposable income of an individual,this means an individual saving ability will be reduced ii not completely stopped from such habit hence preventing individual from doing other economic activities.
Discourage investment,Heavy tax rate on firm profit become disincentive for investor to invest on particular sector instead investors will opt to invest in other sector which their tax rate is of reasonable value.

NB:Progression tax system is the type of tax system in which the proportional of income taken into taxation increases as income increases.