Tax and Fee
If we compare tax and fee, the following points of difference can easily be noticed between the two sources of public revenue.
- Fees are paid to a get a special benefit or services from the government. But in case of tax, the tax payer does not get any direct benefit.
- If the fee payer sacrifices the special benefit, he need not pay the fee, But in case of tax, it is compulsory.
- Fee is related more or less to the cost of a particular rendered by the Govt. But tax is not concerned with the cost of any particular service for the tax payer.
- Though the Govt. collects both tax and fee, the scope of tax is much wider than the scope of fee.
