Fee

Fee – A fee is a payment charged by central or local governments in exchange for specific services or benefits provided to individuals, businesses, or organizations. Unlike taxes, which are generally imposed to generate revenue for public expenditure, fees are linked directly to the service rendered. Key Features: Levied in exchange for a particular service (e.g., licensing, registration, inspection). Not considered a tax in the context of double taxation treaties. Amount charged is often proportional to the cost of providing the service. May be mandatory or voluntary, depending on the regulation.

Example: Passport fees collected by the government for issuing a passport. Municipal fees for water connection, building permits, or sanitation services