How is tax different from the fees charged by the government? [3marks]
Dear student,
Tax refers to money that a government charges an individual or business when they perform a particular action or complete a specific transaction. This tax is often assessed as a percentage of an amount of money involved in the transaction. For example, income tax, sales tax, entertainment tax, etc.
Fees is charge paid to the government by individuals or by a business. However, a fee is specifically applied for the use of a service. For example, a government charge registration fee like service tax registration, VAT Registration.
Regards