The composition of non-tax revenue varies across countries, depending mainly on each country’s efforts to innovate and diversify non-tax sources of revenue. Countries have used a variety of non-tax revenue instruments, from levies on natural resource extraction to pollution fees. Each country should design non-tax revenue sources according to its own economic context, development objectives and target groups.

Because non-tax revenue is volatile, often reflecting fluctuations in natural resources prices, countries need to develop realistic collection targets based on prudent financial management. Challenges to mobilizing more revenue from non-tax sources include the lack of strong institutions, appropriate infrastructure and effective relations between the central government and subnational governments.