Sources Of Revenue In Nigeria

Revenue is the total annual income of the federal administration, state presidential term or local governance council. In other(a) words, altogether the money that goes into the Treasury regardless of the sub-head into which it is paid. The sources of revenue argon: -petroleum revenue- the sources of anele revenue ar: * joint venture hard cash call royalty (JVC) *petroleum profit assess *Rent *NNPCs earning from direct gross gross revenue, sales of gas (crude rock oil sales). *Proceeds from the interior(prenominal) market * penalisation from gas flargond *Pipeline licences and other fees * scrape duties and VAT on domestic crude oil -Non-oil revenue- the sources of these let in: -Indirect valuees- these argon valuatees indirectly utilize on consumer goods. Examples of indirect taxes take: customs and excise tax, sales tax, expenditure tax and so on which I shall spring up below. *Excise duties- these are taxes throw on commodities produced locally. Excise duties are compel on selected commodities, much(prenominal) as: alcohol, petroleum products and tobacco. The duties are discriminatory in fictitious character and are usually impose on an ad volarem basis. Excise duties are both(prenominal)times oblige to protect infant industries from outside competition. *Custom duties- this constitutes one of the oldest devices engross in collecting revenue.

The arse of customs duties is the movement of goods crossways national boundaries. Occasionally, you have domestic custom duties. For example, movement of goods at heart the country. There are two types of custom duties which are: - merchandise duties -Import duties *Sales tax- this tax like other tax has high reliability. It is a authentic way of collecting revenue, in that it has a wide coverage. Normally, sales tax is imposed on basic necessities of life. For goods with inelastic demand, it is a reliable source of revenue. some other quality of sales tax is that it is an effective tool for unequivocal inflation. It is an anti-inflationary device in that it reduces the disposable...If you want to get a bounteous essay, order it on our website: Ordercustompaper.com

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