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What is the one function that the Vatican City government lacks?

   Police
   Issuing License Plates
   Taxation
   Issuing Passports

Your answer was: Taxation.
You are correct!!


Answer: Taxation! There are no taxes, no restrictions on the import or export of funds, and no customs or excise duties payable in the Vatican City. Employees of the Vatican pay no income tax and no customs duty on gasoline or goods that they buy in the Vatican. Museum fees, stamp and coin sales and contributions generate Vatican City revenue.

CLICK HERE to view more on taxes in Vatican City.