What enables the government to generate a huge amount of revenue
Answers
For a country of 5.6 million, of which 4 million are citizens or permanent residents, the contribution of the incomes earned from government reserves to government revenue is huge.
For Example The government in Singapore has been able to generate revenues from well-invested reserves accumulating since Singapore’s Sovereign wealth funds were set up Temasek in 1974 and Government Investment Corporation (now known as GIC) in 1981. The information below indicates that personal taxes and sales taxes in Singapore are at half the rates what they would otherwise need to be, should the sovereign wealth funds not be contributing to the government revenue.
Answer:
The population and the tax collection and control mechanisms.
Explanation:
A country can only generate a huge amount of revenue through sealing all the loopholes in government tax collection system.
This shall ensure the capture of all the tax generated from the income generating activities that both the state and the citizens indulge with both international and locally.
The government can also ensure good diplomatic ties to ensure running of business internationally and also improve its infrastructure to allow for business.
Sources of government revenue
The government generates revenue from so many activities .
Among them are :
taxes ; taxes are paid for so many activities that take place within a country , for instance , PAYE is taxed from earnings on all employees .
VAT is induced on all products that are being made and sold.
Businesses such as SME 'S and PLC'S pay huge taxes for the transactions that they peruse.
Other sources of government revenue are court fines :
N/B :COURT FINES ARE PAID BY OFFENDERS TO BE PARDONED BY COURTS IS PAID INTO THE SYSTEM TO BE USED BY THE GOVERNMENT AS REVENUE.
The government also operates on grants , donations and loans from their diplomatic allies .