Publication

Abstract : Agricultural land taxes can be an important source of deve. Jopmflnt finance in underdeveloped countries. In developing countriee adequate taxation of the furroing sector is more important than it Ia in advanced countries, sinca it has a special contribution to make to the emooth proceee of development. In underdeveloped countries the agricultural ector is the largest sector of the economy and contribuee about 80 .per cent of the national product. If this eector remain untaxed or lightly taxed, either the burden of taxation will be ehifted to other aeotore or the econom.ic growth may elow down for lack of adequate finance. Again, iD each countriea the agricultural sector baa pined much aa compared to other eectors. If thie aeotor is undertaxed the gains will be enhnced at the coat of other aectore. For example, In India !though the income of the agriculturl aeotor inoreaeed, on an averege, by 11 per cent year between 1950 and 1970 and ~he prfcee of farm products went up by 48 per cent during the Third Plan period againat the 25 per cent gain registered by lnd118trial products, bardlv any elfort baa been made to mop up the additiouaJ gains of the former. As a consequence, the burden of taxation baR been ahifted to non-agricultural aector.