Public revenue in a country is primarily generated through various forms of taxation. Which of the following correctly differentiates tax revenue from non-tax revenue and provides an example of each?
1
Tax revenue is collected only through direct taxes, like income tax, whereas non-tax revenue is generated solely from loans taken by the government
2
Tax revenue is collected through both direct and indirect taxes, such as income tax and GST, while non-tax revenue includes dividends from public enterprises and fees
3
Tax revenue comes only from customs duties, while non-tax revenue includes grants and international aid
4
Tax revenue includes fees and fines, while non-tax revenue consists of property tax and excise duties