**Municipal Tax: A Source of Revenue for Local Government**

The local government realizes revenue from various sources to finance its activities and provide public services to the citizens. One of the significant sources of revenue for the local government is the municipal tax. Municipal tax refers to the tax levied by the local government on individuals, businesses, and properties within its jurisdiction. This tax is imposed to generate funds for the functioning and development of the local area.

**Explanation of the Answer:**

The correct answer to the question is option 'A' - Municipal tax. Here's an explanation of why municipal tax is the correct answer:

**1. Municipal Tax as a Local Revenue Source:**
- Municipal tax is a primary source of revenue for local governments, including municipalities, cities, and towns.
- It is collected by the local government to fund local infrastructure development, public services, and administrative expenses.
- The tax is levied on various entities, including individuals, households, businesses, and property owners within the municipality's jurisdiction.

**2. Importance of Municipal Tax:**
- Municipal tax plays a crucial role in providing financial resources to the local government.
- It enables the government to meet its financial obligations and deliver essential services to the community, such as sanitation, water supply, road maintenance, public transportation, education, healthcare facilities, parks, and recreational amenities.
- The revenue generated from municipal tax helps improve the quality of life for citizens by enhancing the local infrastructure and providing better public services.

**3. Types of Municipal Taxes:**
- Municipal tax may encompass various types, depending on the local government's policies and regulations.
- Some common types of municipal taxes include property tax, business tax, sales tax, occupancy tax, vehicle tax, and entertainment tax.
- Each tax type targets specific sectors or activities, ensuring a diversified revenue stream for the local government.

**4. Collection and Administration of Municipal Tax:**
- The collection and administration of municipal tax are typically carried out by a dedicated department or agency within the local government structure.
- This department is responsible for assessing the tax liability of individuals and entities, issuing tax bills, collecting payments, and enforcing tax compliance.
- Taxes can be collected through various methods, such as direct payments, online platforms, or through intermediaries like banks.

In conclusion, municipal tax is an essential source of revenue for the local government. It allows the government to finance its operations, deliver public services, and promote the overall development of the local area.