Tax Revenue Economics Definition

Sources of tax revenue.

Tax revenue economics definition. The table below shows the demand for a product where there is a. The ar curve is the same as the demand curve. This would occur at the point where the extra revenue from selling the last marginal unit i e. Tax revenue is the income that is gained by governments through taxation taxation is the primary source of government revenue revenue may be extracted from sources such as individuals public enterprises trade royalties on natural resources and or foreign aid an inefficient collection of taxes is greater in countries characterized by poverty a large agricultural sector and large amounts of.

It is an ad valorem tax. In economics taxes fall on whomever pays the burden of the tax whether this is the entity being taxed such as a business or the end consumers of the business s goods. Revenue maximisationrevenue maximisation is a theoretical objective of a firm which attempts to sell at a price which achieves the greatest sales revenue. Information and translations of tax revenue in the most comprehensive dictionary definitions resource on the web.

Sales taxes are borne by the consumer when s he purchases certain goods. Taxation imposition of compulsory levies on individuals or entities by governments. What does tax revenue mean. Total revenue tr price per unit x quantity.

Meaning of tax revenue. If marginal revenue is positive an extra unit sold. It gives a detailed report on revenue collected from different items like corporation tax income tax wealth tax customs union excise service taxes on union territories like land revenue stamp. Learn more about taxation in this article.

Marginal revenue mr the change in revenue from selling one extra unit of output. Tax revenue forms part of the receipt budget which in turn is a part of the annual financial statement of the union budget. This is in contrast to an excise tax where the charged value is based on the number of items being sold. Total tax revenue as a percentage of gdp indicates the share of a country s output that.

Revenue is the income generated from the sale of goods and services in a market. The charged value is based on the value of what is being sold. The marginal revenue mr equals zero. Tax revenue is defined as the revenues collected from taxes on income and profits social security contributions taxes levied on goods and services payroll taxes taxes on the ownership and transfer of property and other taxes.

Definition of tax revenue.