Question

To improve non-tax revenue, a government can:

• A. Reduce taxes on luxury goods to stimulate consumer spending and generate more income tax.
• B. Increase user fees for public services like national parks or water supply.
• C. Sell off state-owned enterprises to private investors to generate one-time revenue.
• D. Implement a wealth tax on high-net-worth individuals to increase government revenue.

Answer 1

Answer:

B. Increase user fees for public services like national parks or water supply.

• Non-tax revenue comes from sources other than taxes, such as fees, fines, and profits from state-owned enterprises.

• Increasing user fees for public services is a direct way to boost this type of revenue.