Prodnalog(Russian:продналог,IPA:[prədnɐˈlok],fromпродовольственныйналог,prodovolstvenniynalog;lit."food tax";Ukrainian:продподаток,romanized:prodpodatok,fromпродовольчий податок,prodovolchyi podatok) is theRussianword for ataxon food production,paid in kindin theSoviet Union,and sometimes known as "theTax in Kind".Prodnalog,which replacedprodrazvyorstka,was introduced by aDecreeof theAll-Russian Central Executive Committeeon March 21, 1921 and was abolished in 1924.
The transition to prodnalog was the first act of theNew Economic Policyand a necessary incentive for increasingSovietagriculturalproduction. Thepeasantsknew in advance how much produce they would have to surrender to the state. Therateof prodnalog was much smaller thanprodrazvyorstka.For comparison, in 1920-1921 the peasants surrendered to the state 367 millionpoods(6,010,000metric tons) ofcerealsthrough prodrazvyorstka, as opposed to 240 million poods (3,930,000 metric tons) in 1921-1922 through prodnalog.
During the first year of introduction of prodnalog, a significant amount ofbreadand other products remained at peasanthouseholds' disposal, which provided an incentive for peasants to develop their own householdeconomy,widen the sowing areas, increase the total number oflivestockandproductivityofcrops.The rate of prodnalog on each kind of agricultural product was determined depending on local conditions and prosperity of a given peasant household. The Soviet state adhered to a policy ofprogressive taxation;the highest rate of prodnalog had to be paid by thekulakhouseholds.
In March and April 1921, a number ofSoviet Decreesintroduced a natural tax on bread,potato,oilseeds,eggs,dairy products,wool,hides,flaxandhemplinen,tobaccoetc. The collection of agricultural goods in excess of prodnalog, if necessary, was intended to be made on abarterbasis by giving peasants manufactured goods. In order to accelerate the expansion ofcommoditycirculation, create necessary conditions for developingfarmingandindustryand speed up the productive forces of the country, the government encouraged small-scale production all overSoviet Union.The introduction of prodnalog revived the trade and created a different kind of relations between the city and the village.
By the decision of the12th Congressof theRCP(b)(April 1923), prodnalog and other taxes in the rural areas were exchanged for a universal direct agricultural tax (decree of the All-Russian Central Executive Committee andSovnarkomon May 10, 1923). The latter would be collected inmonetaryform starting in 1924, with the establishment ofhard currencyin theUSSR.
See also
edit- Ural-Siberian methodof grain procurement