A government compiled the following financial receipts at the end of a fiscal year:

- Companies Income Tax: $\text{₦}180\text{ billion}$
- Value Added Tax: $\text{₦}140\text{ billion}$
- Mining Royalties: $\text{₦}65\text{ billion}$
- Passport and Drivers' License Fees: $\text{₦}15\text{ billion}$
- Fines and Court Forfeitures: $\text{₦}10\text{ billion}$
- Foreign Loans and Bilateral Grants: $\text{₦}100\text{ billion}$

Based on these figures, calculate the total non-tax revenue (excluding capital receipts) generated by the government in $\text{₦}\text{ billion}$ .

Answer: 90 billion Naira

Answer

The total non-tax revenue (excluding capital receipts) is 90 billion Naira.

Non-tax revenue includes government revenues generated from non-tax sources such as administrative fees, fines, forfeitures, license fees, and resource royalties. Summing Mining Royalties (

\text{₦}65\text{ billion}

), Passport and Drivers' License Fees (

\text{₦}15\text{ billion}

), and Fines and Court Forfeitures (

\text{₦}10\text{ billion}

) gives

\text{₦}90\text{ billion}

. Taxes (Companies Income Tax and Value Added Tax) and capital receipts (Foreign Loans and Grants) are excluded.

Step-by-Step Solution

Identify non-tax revenue items from the financial receipt list.

Mining Royalties (₦65 billion), Passport and Drivers' License Fees (₦15 billion), and Fines and Court Forfeitures (₦10 billion) are non-tax earnings.

Non-tax revenue consists of earnings derived from public assets, service charges, regulatory fees, fines, and commercial earnings rather than compulsory tax levies.

Separate and exclude tax revenue items and capital receipts.

Companies Income Tax (₦180 billion) and Value Added Tax (₦140 billion) are taxes. Foreign Loans and Bilateral Grants (₦100 billion) are capital receipts.

Taxes belong to tax revenue, while loans and grants form part of capital receipts/debt finance.

Sum the non-tax revenue components.

65 + 15 + 10 = 90\text{ billion Naira}

Adding these non-tax items yields the precise non-tax revenue figure.

Key Concept

Classification of Public Revenues (Tax Revenue, Non-Tax Revenue, and Capital Receipts)

Estimated Time:1m 30s

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