Position of Agricultural Income Tax of Different State Governments during the Plan Period with Reference to Bihar

The receipts from agricultural income-tax have more than doubled during the decade 1951-52 to 1961-62. If we calculate the average receipts of this tax plan-wise, we find that the average annual receipts of agricultural income-tax from the First Five Year Plan to the Sixth Five Year Plan were Rs. 4.33, 7.67, 9.44, 14.04, 13.09 and 50.01 crores respectively. The table below clearly points out the position of agricultural income tax in the plan period.

It clearly points the increasing tendency affected by the enhancement rates of agricultural income tax. In the beginning of the First Five Year Plan, the agricultural income tax was only Rs. 4.33 crores and in the beginning of the Second Five Year Plan, it was Rs. 7.67 crores. All this means that the agricultural income tax increased by Rs. 3.34 crores or 43.54 per cent in the Second Plan period over the First Plan period. The agricultural income tax in the beginning of the Third Five Year Plan went up to Rs. 9.44 crores, meaning an increase of the agricultural income tax in the Third Five Year Plan over the Second Five Year Plan by Rs. 1.77 crores or 18.75 per cent. In the Fourth Five Year Plan the agricultural income tax was Rs. 14.04 crores, which is clearly an increase over that of the Third Five Year Plan by Rs. 4.60 crores or 32:76 per cent. Thus, the table below shows the regularly increasing tendency of the agricultural income tax during the planning era, except in the years 1974-75 and 1983-84 (BE).

It shows that the agricultural incomes of different States vary due to various factors. In Assam, Tamil Nadu, Karnataka and Kerala the agricultural income tax has largely contributed towards the total receipts derived from plantations and land reforms measures. There has been an increase in the revenue of these states due to the agri cultural income tax. But, in States like Uttar Pradesh, Bihar, Maharashtra, West Bengal and Rajasthan where zamindari interests have been abolished, the receipts from this tax show a downward tendency. Table 2 shows that there are good receipts of agricultural income tax in the States imposing this tax. States like Gujarat, Madhya receipts in some of the years which means that there is not good efforts from the governments to collect the receipts from this tax. The implementation of land reform measures, i.e., fixation of ceiling and liquidation of larger holdings have affected the yield from the Agricultural Income tax. It is also relevant to examine the position of agricultural income tax in relation to total tax revenue and total revenue of the States:- The contribution of the agricultural income tax to the exchequer- of Madhya Pradesh, Gujarat, Punjab, Andhra Pradesh. Rajasthan, Haryana and Jammu and Kashmir has been nit Ra It also reveals that it has contributed to the exchequers of States like Assam, Bihar, Maharashtra, Kerala, Uttar Dradesh and West Bengal. Although the figures show the falling tendency we find in Assam the percentage of agricultural income-tax to total tax revenue in the years 1951-52, 1956-57, 61-62, 1969-70, 1974-75 and 1980-81 were 12.32, 11.06, 14.53. 0.84, 6.12 and 9.50 respectively. The percentage of agricultural income-tax in Assam in relation to total revenue in the years 1951-52, 1956-57, 1961-62, 1969-70, 1974-75, 1980-81 and 1983-84 were 8.41, 5.95, 7.30, 4.09, 2.75. 2.98 And 4.82 respectively. In Bihar too the agricultural income tax in relation to total tax revenue and total revenue shows a falling tendency. As in the years 1951-52, 1956-57, 1961-62, 1969 70 and 1974-75 the percentage of agricultural income tax to total tax revenue were 2.48, 0.43, 0.92, 0.16 and 0.05 respectively. The percentage of agricultural income tax in Bihar in relation to total revenue in the years 1951-52, 1956-57, 1961-62, 1969-70 and 1974-75 were 1.65, 0.31, 0.59, 0.11 and 0.03 respectively Maharashtra also persents the same picture of falling tendency. In the years 1961-62, 1969-70, 1974-75, 1980-81 and 1983-84 the percentage of agricultural income tax in relation to total tax revenue were 8.46, 0.37, 0.05, 0.01 and 0.01 respectively. In Maharashtra, the percentage of agricultural income tax in relation to total revenue were 5.89, 0.28, 0.03, 0.01 and 0.08 respectively. In Kerala its contribution in relation to total tax revenue and total revenue is comparatively better than that of Bihar, Uttar Pradesh and West Bengal. But, soon after it also shows a falling tendency. In the years 1961-62, 1969-70, 1974-75, 1980-81 and 1983-84 the per centage of agricultural income tax to total tax revenue were 8.39. 3.44, 2.35, 2.31 and 1.59 respectively. The ratio of the agricultural income-tax in relation to total revenue in Kerala were 5.23, 2.22, 1.39, 1.76 and 1.20 per cent respectively. Uttar Pradesh and West Bengal present the same lesser contribution as indicated in the Table 2. contribution has been showing by and large a decreasing tendency due to implementation of land reform measures, i.e., fixation of ceilings and liquidation of larger holdings.

1 Angrish, A/C: Direct Taxation of Agriculture, Somaiya publication PVT. Bomby, 1977 p. 5 2 Jain, R: State Taxation in India, Progress Publication, Bhopal, 1972, pp. 53-54 3 Report of the Taxation Enquiry Commission 1953-54 Vol.-III, 1955 p-183 4 R.B.I August 63, p. 1027 5 The Bihar Agriculture tax Act 1948 (Section 19 (1)

M.A. (Economics), PhD, Shivpuri, Araria