Abstract

It is but a tuism to say that the economic condition of a country depennds largely on its industriel development.When we talk of industrial development in this country. We sometimes full to recognize the fact that agriculture is the staple industry of this country. the percentage of people living on agriculture proper and other alied industries is caculated by various authorities at something between 65 to 85 per cent. and therefore , in any economic enquiry that is underaken it is necessary to gice the first placeto agriculture. Not only should a careful examination into the first place to agriculture. Not only should a find out the means of improving the same. The want of labour saving machinery. the sub division of land into uneconomic holdings.the lack of cheap and easy gredit,the abence of scientific knowlege of agriculture are the main reasons why agriculture in India is in so backward a condition.Any inquiry into agricultural problems will have to include on inquiry into the land reveue system of the country which varies from privinee to province. One of the frst points that will emerge in discussions on the land revenue system is whether land revenue is a tax or rent. It is a tax as is argued by many scientific economists, then the question arises why even the owner of the smallest agricultural holding has to pay the land tax wuthout any exemption, while incomes from soureces other then land get exemmption upto Rs,2,000 per annu. In this connection ,attention may be dawn to an anomaly that while a man who invests in land is not charged income-tax another man who invests in industries ,or in trade and commerce is charged income-tax on the profits that he makes on such investments. in such circumstance, it is not surprising if the richer classes invest their savings in hand and thus rise the price of land by undue competition and then try to get a return on their investment in land by rack renting.Under the existing land revenue system and the Income Tax Act while the smaller land holders have to pay a propotonately large portion of their income on land revenue.the bigger land lords have on account of the exemption from payment of income-tax. to pay proportionately less.The problem complecated as it is , will have to be considered in the light of the existing Hindu and Mahemedan law under which all sons have equal right in the property of their fathers and in accordance with which lands are sub divided into uneconomic holdings.The questions ought to be tackled as a whole if there is to be a re-adjustment of the taxation of the country on a correct scientific basis.and I hope the Taxation Committee. whose members I welcome here on your behalf, will have the courage to do so in a scientific spirit and will not be fright ened by the cry of the Hindu law of inheritance or vested interests being in danger. The problem of the sub-division of agricultural holdings, though a very difficult one ,has been fairly successfully tackled in some provinces,and if economists, social reformers and other political leaders give a definite lead both to Government and the public in this matter, it is not incapable of solution in other provinces as well.

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