A fee is a form of tax which is levied for various administrative activities, and regulated by law, such as a consultation fee. The term is also used frequently for private sector charges, especially in basic public services (telephone charges).
The difference between tax and fees can be illustrated in the case of the registration of a deed, where the government collects a registration fee, and also requires a document duty (2.5% of sales value).
The administrative law recognizes three different types of fees: fixed rates, frame rates and value sets. Fixed rates, entail an amount charged for a specific official act. It is also possible to purchase the fixed rate for not only a completed official act, but also a formulated resource.
Frame rates (frame fees) are indicated by a minimum and a maximum amount. The actual fee in each case is levied under the discretion of the authourities, in compliance with the requirement of the functions or service in question. Frame rates will essentially apply if the fixed fee conforms to the principle of equivalence which can vary considerably for an different official acts.
If the fee is calculated on the value of the object, then a fixed rate value is assigned. The fundamental structure is left to the legislature, which could make the calculation of the fee directly dependent on the value (eg, stagger: 1% of base), or on the basis of amounts involved(eg $1 per full $100 value).
Charges have been introduced in some jurisdictions in order to facilitate criminal justice processes in connection with minor traffic offenses. Such fees are not be recorded in the register and the remedy is not considered a punishment. These fees may be required by the traffic department, customs authorities and the police. The police can also impose fees for various minor offenses, such as public drinking.
The principle of rationality requires that in addition to the legitimate interest of the public, the authorities have to be reimbursed for delivering certain public services or tasks. And the economic value or other benefit received by the recipients is considered, and a balance has to be achieved between the two.
Principle rates are calculated on the grounds of reimbursing the administrative burden of carrying certain official acts on the one hand. And also the importance of the economic or other benefits of the other official action (equivalence principle). These factors are therefore imperative in the setting of fees, taking into account the authorities’ average administrative expenses, resulting from an official act.