Advertisement Remove all ads

Distinguish Between a Tax and a Fee. - Economics

Distinguish between a tax and a fee.

Advertisement Remove all ads


Differences between tax and fee:

1) A fee is imposed for a specific reason. For instance, the school management imposes a fee for school admission of a student. The tax has no specific reason. Sales tax is imposed on a commodity without stating any special benefit on a purchase of a commodity.

2) A fee is not a compulsory payment towards the Government. There will not be any legal punishment against the non-payment of a fee. For example, if the admission fee is not paid, then the student will not be admitted into school. Tax is a compulsory payment made by people to the Government.

  Is there an error in this question or solution?
Advertisement Remove all ads


Advertisement Remove all ads
Advertisement Remove all ads

View all notifications

      Forgot password?
View in app×