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

A+| A| A-

Taxation of Agriculture Some Basic Issues

It has been argued that if land revenue were replaced by a tax on agricultural incomes as part of an integrated system of income taxation, the loss of revenue as a result of abolition of land revenue would be more than made up and, in addition, a major loophole in the existing system of income taxation would be plugged and a measure of much-needed equity introduced in taxation of the agricultural sector, Comparison of land revenue with agricultural income-tax, suggests, however, that from the point of ensuring efficient use of land the superiority of land revenue is absolute. Since land revenue is a fixed charge, the marginal rate of tax is zero. Thus the incentives for additional effort and investment to raise the productivity of land are left unimpaired.

Dear Reader,

To continue reading, become a subscriber.

Explore our attractive subscription offers.

Click here

Back to Top