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Give reason of Explain the statement 1. Income collected from tax is a main source of government revenue.

Give reason of Explain the statement
1. Income collected from tax is a main source of government revenue.

Answer: 

1. Income collected from taxes forms a main part of the government revenue as a tax is a legally compulsory monetary contribution to the government by different economic units, such as households, firms and other economic units. Taxes are imposed by the government on different activities like income, property, production, occupation etc.