ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Farm Bounty and BurdensSubscribe to Farm Bounty and Burdens

Intersectoral Equity and Agricultural Taxation in India

in India Raj Krishna In this paper I propose to argue: (1) that the concept of 'intersectoral equity' which forms the basis of comparisons of sectoral tax burdens is operationally superfluous; (2) that recent studies (Gandhi, 1966; Mathew, 1968y of the relative burden of taxation on agriculture and non-agriculture in India fail to prove that Indian agriculture, as a sector, is "undertaxed"; (3) that there are special historical reasons why agricultural income was not treated like non-agricultural income in the Indian income-tax system after Independence; (4) that in view of these reasons the fiscal treatment of agriculture in Meiji Japan is irrelevant for contemporary Indian policy although it is frequently mentioned2 as an example to be emulated; and (5) that there is no convincing general case for heavier taxation of agricidture as such, but the existing horizontal inequity in the Indian income-tax system in favour of rich farmers should now be remedied by treating agricultural income just like non-agricultural income for fiscal purposes.

Economics of Farm Size and Farm Scale-Some Assumptions Re-examined

Some Assumptions Re-examined Utsa Patnaik This paper argues that a very considerable difference is made to the behaviour of farm variables with changing economic size of farms (i e, changing scale of production), depending on how we measure this economic size.

Inter-Sectoral Equity in Tax Burden - Estimates of Potential Tax Revenue from the Farm Sector

Estimates of Potential Tax Revenue from the Farm Sector S L Shetty What is the potential tax revenue that might have accrued to the State exchequer if, for inter- sectoral equity, farm households had been subjected to tax incidence levels identical with those borne by non-farm households? In estimating this magnitude, this paper examines the inter-sectoral and inter-class inequity in the incidence of tax on farm and non-farm households by estimating the patterns of income distribution in the farm and non-farm sectors and juxtaposing the same against the absolute levels of tax burdens on households under the respective income brackets.
Back to Top